Empery Digital has sold 1,400 Bitcoin for approximately $87.1 million as the company pivots its focus towards artificial intelligence infrastructure and debt management. This move comes as market predictions suggest a 46% likelihood that Bitcoin could reach $50,000 again.
In a regulatory filing dated July 10, Empery Digital revealed that it made this sale between May 7 and July 7 at an average price of around $62,200 per BTC. This transaction significantly decreased the company's Bitcoin holdings, cutting them by almost half and marking the largest sale to date.
A portion of the sale proceeds was allocated to repay $10 million of existing debt as of July 7. Additionally, Empery aims to utilize the funds for legal expenses related to shareholder litigation, ongoing operational costs, as well as a previously mentioned property acquisition.
The remaining capital will support a $65 million commitment to a new AI data center project. Through this initiative, Empery is expected to secure a 25% interest in a venture connected to Hunt Properties, which is acquiring a power-rich industrial site in the U.S.
This site is intended to be transformed into a campus for an AI data center, boasting an initial power capacity of about 150 megawatts, with plans for expansion to 300 megawatts.
Previously, Empery raised over $500 million last July to implement its Bitcoin treasury strategy after departing from the electric powersports vehicles sector. Initially known as Volcon, the company amassed upwards of 4,000 BTC, positioning itself as a prominent public holder of Bitcoin. As of the last filing, Empery still retains 1,514 BTC alongside approximately $73.9 million in cash, while also facing about $45 million in outstanding debt.
As Bitcoin's price fluctuates below previous highs, the pressure mounts on corporate holders like Empery to sell to fund various financial strategies including debt, dividends, and new investments. The latest sale has positioned Empery alongside other companies that are reducing their Bitcoin reserves following a treasury model approach.
In market predictions, Bitcoin currently shows a 64% chance of hitting $55,000 and a 94% likelihood of reaching $65,000. Bitcoin recently traded at around $64,000 after a recovery from a bear-market low of approximately $57,700, recovering about 11% from that dip.
This material is for informational purposes only and should not be considered financial advice.
