Empery Digital sold 1,635 Bitcoin for $102.2 million between July 1 and Aug. 6, according to its latest quarterly filing. The sales cut total Bitcoin holdings to 1,279 BTC.
Of that balance, 954 BTC is locked as collateral against $35 million of debt, leaving 325 BTC unrestricted—a 76 percent drop from 1,375 unrestricted BTC on June 30. That is the number that matters: the firm is operating with almost no free Bitcoin.
The recent sales follow earlier liquidations. Empery sold 1,167 BTC for $80.1 million in the first half of the year, using proceeds to cover financial obligations including $54.0 million for share repurchases, a $50.0 million repayment on its Repo Facility and a separate $10.0 million repayment under a master loan arrangement. The company said both equity and Bitcoin sale proceeds supported the Repo Facility repayment.
Empery has been here before on collateral pressure. It transferred 576 BTC to its lender on Feb. 4 and another 186 BTC on June 3 following collateral calls. Both were top-ups to maintain loan terms, not forced liquidations—a distinction worth watching as BTC price volatility continues.
Loan terms on the outstanding $35 million debt require a 174 percent collateral target. A margin call triggers below 153 percent; liquidation is possible below 143 percent if the breach is not cured within 12 hours. With 954 BTC pledged and BTC prices subject to sharp moves, that cushion is thin.
The firm eased some pressure after June 30 by repaying $20 million of debt, reducing total debt from $55 million to $35 million. The lender returned 585 BTC, pulling pledged collateral down from 1,539 BTC to the current 954 BTC.
Empery also carries a conditional $62.1 million claim tied to a proposed data-center property acquisition. It has already contributed $2.9 million to EMHU, a separate property venture managed by TexStack. TexStack controls the acquisition's closing process and can initiate mandatory pro-rata capital calls, which Empery guarantees.
That commitment is separate from a $20 million investment in Cardinal Data Power, where Empery holds an approximately 8 percent stake with no additional funding obligation.
At June 30, Empery reported $3.7 million in cash, including restricted funds, alongside a $5.7 million working-capital deficit. Management said a combination of cash, operational revenue, derivatives proceeds, borrowing and potential Bitcoin sales should cover planned operations, debt obligations and the conditional property contribution for more than one year. Bitcoin sales are identified as one funding source, not a certainty.
