Empery Digital Sells 60 BTC from Treasury to Fund Stock Buyback Amid Investor Revolt

Empery Digital Inc. (NASDAQ: EMPD) has liquidated 60 BTC from its treasury holdings, deploying the proceeds to repurchase its own common stock as internal pressures mount and the company faces growing shareholder dissent.

Bitcoin Sale Fuels Share Repurchase Program

The company sold the Bitcoin at an average price of $66,583 per coin during the final week of February, generating approximately $4 million in gross proceeds. Management immediately channeled these funds into its $200 million share repurchase program while reinforcing cash reserves.

This strategic pivot comes at a time when other prominent corporate Bitcoin holders are moving in the opposite direction. Michael Saylor's Strategy and Anthony Pompliano's ProCap Financial have both capitalized on recent market volatility to expand their Bitcoin positions rather than reduce them.

Steep Losses Drive Strategic Shift

Empery Digital, which transitioned from electric vehicle manufacturer Volcon Inc. to a Bitcoin treasury company in mid-2025, is currently nursing significant unrealized losses. The firm acquired Bitcoin at an average price of $117,607 per coin, only to watch valuations plummet to nearly half that amount—resulting in an unrealized loss exceeding 41%.

The sharp decline in Bitcoin prices has caused Empery Digital's stock to trade at a substantial discount to its Net Asset Value (NAV). According to recent filings, the company's market Net Asset Value (mNAV) stands at 0.590—approximately 40% below its actual intrinsic value.

In response, management has aggressively repurchased over 18.6 million shares of common stock at an average cost of $6.21 per share, reducing the outstanding share count to approximately 32.7 million shares.

Activist Investors Demand Leadership Overhaul

The company's troubles extend beyond market losses. A faction of activist investors, led by shareholder Brown—who controls approximately 10.3% of Empery Digital—has publicly criticized CEO Ryan Lane and the board of directors for what they characterize as a failed Bitcoin strategy that has erased hundreds of millions in shareholder value.

Critics contend the current buyback initiative is merely a tactical maneuver designed to pacify activist shareholders demanding wholesale leadership changes.

In late February, ATG Capital nominated nine director candidates to replace the existing board at the upcoming 2026 annual meeting. The activist group alleges the current board has entrenched itself and deployed "poison pill" defensive measures to block shareholder influence.

Among the most serious accusations are claims that Empery employees have engaged in day-trading activities involving hundreds of millions of dollars in Bitcoin derivatives.

Brown previously alleged he was forcibly removed by security from the company's Rockefeller Center office in January after demanding immediate liquidation of all Bitcoin holdings. Empery Digital's management counters that Brown refused to depart following a failed negotiation in which he purportedly demanded the company repurchase his shares at a substantial premium to market prices.

Activist investors maintain that the only path to preserving shareholder value is liquidating the remaining 3,664 BTC and returning capital to stockholders before further erosion occurs.

Divergent Strategies Across Corporate Bitcoin Holders

While Empery Digital retreats from its Bitcoin position, other major institutional players are doubling down. ProCap Financial, helmed by Anthony Pompliano, announced the acquisition of an additional 450 BTC while simultaneously pursuing its own share repurchase program.

Strategy deployed over $200 million in its latest Bitcoin purchase, leveraging lower market prices to reduce the cost basis of its 720,737 BTC reserve to under $76,000 per coin.

Coinasity's Take

Empery Digital's decision to liquidate Bitcoin holdings stands in stark contrast to the conviction displayed by seasoned players like Strategy and ProCap Financial. The company's distressed position highlights the risks of entering Bitcoin treasury strategies at market peaks without proper risk management or long-term conviction. While buybacks may provide short-term stock support, the fundamental issue remains: Empery lacks the institutional patience and strategic clarity that characterizes successful corporate Bitcoin adopters. The activist revolt underscores a critical lesson—corporate Bitcoin strategies require both favorable entry timing and unwavering commitment through market cycles.