Never sell treasury model cracks again as 1,635 BTC is offloaded shrinking Empery reserves by 76% in weeks

Bitcoin-treasury company Empery Digital sold 1,635 BTC for $102.2 million from July 1 through Aug. 6, leaving it with 1,279 BTC, according to its latest quarterly filing.

Of that total, 954 BTC was restricted as collateral against $35 million of debt. Subtracting the pledged balance from total holdings leaves 325 BTC unrestricted, down from 1,375 at June 30.

The post-quarter sales rapidly reduced a treasury that had already been used to fund cash needs earlier in the year. Empery sold 1,167 BTC for $80.1 million during the first half, when it spent $54.0 million on share repurchases, repaid $50.0 million on its Repo Facility and made a separate $10.0 million repayment under its master loan arrangement.

The company said both equity and Bitcoin-sale proceeds supported the Repo Facility repayment, but it did not allocate the amounts or trace one pool of sale proceeds to every use.

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Collateral and data-center commitments narrow Empery’s options

The amended loan terms set a 174% collateral target. A margin call occurs below 153%, while liquidation can occur below 143% if Empery does not cure the breach within 12 hours.

Empery said it transferred 576 BTC to its lender on Feb. 4 and another 186 BTC on June 3 after collateral calls. The filing did not report an executed lender liquidation, so the disclosed transfers were collateral top-ups rather than forced sales.

CryptoSlate’s July analysis detailed the loan’s short distance between a collateral call and potential liquidation. Empery eased that pressure after June 30 by repaying $20 million. Its lender returned 585 BTC, reducing pledged collateral from 1,539 BTC to 954 BTC as debt fell from $55 million to $35 million.

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Apr 4, 2026 · Andjela Radmilac

A proposed data-center property acquisition could put another $62.1 million claim on Empery’s cash. The company has already contributed $2.9 million to EMHU, a separate property venture managed by TexStack. The additional commitment applies only if the acquisition closes.

TexStack controls the closing process and can make mandatory pro-rata capital calls backed by Empery’s guarantee.

The property commitment is distinct from Empery’s closed $20 million investment in Cardinal Data Power, which gave Empery an approximately 8% stake. No additional funding obligation tied specifically to the CDP investment was disclosed.

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At June 30, Empery reported $3.7 million of cash, including restricted cash, and a $5.7 million working-capital deficit. Management said a mix of cash, operations, derivatives proceeds, borrowing and potential Bitcoin sales should cover planned operations, debt and the conditional property contribution for more than one year.

Management listed Bitcoin sales as one of several funding sources, not a certainty. Further collateral pressure or a closing of the property acquisition would still leave the company managing a liquid BTC cushion that had fallen to a derived 325 BTC by Aug. 6.