Empery Digital sells 1,635 Bitcoin for over $102 million

Empery Digital has sold 1,635 Bitcoin between 1 July and 6 August for approximately $102.2 million. Following this sale, the company still holds 1,279 Bitcoin, most of which is locked up as collateral for a debt. The freely available Bitcoin inventory has consequently declined sharply.

Bitcoin is available at OKX and Bybit.

In short:

• Empery Digital sells 1,635 Bitcoin for $102.2 million between 1 July and 6 August.
• Of the remaining 1,279 Bitcoin, 954 BTC is blocked as collateral for $35 million in debt.
• The company may also face an additional obligation of $62.1 million related to the purchase of a data center.

Freely available Bitcoin plummets to 325 BTC

Of the 1,279 Bitcoin still held by Empery Digital, 954 BTC is locked up as collateral for $35 million in debt. This means the company can only freely deploy 325 Bitcoin, a significant decline from the 1,375 freely available Bitcoin it still had on 30 June. This is evident from the most recent quarterly report to the SEC.

The Bitcoin price stands at $65.300 at the time of writing, an increase of 0.6% over the past 24 hours. This means the 1,635 BTC sold went for an average of just under $62.500 each. That is considerably less than the current price, which raises questions about the timing of the sale.

Additional pressure due to potential $62 million obligation

In addition to the existing debt, Empery Digital also faces a possible additional financial obligation. The company is dealing with a potential commitment of $62.1 million in connection with the acquisition of a property for a data center. Whether and when this amount will actually have to be paid is not yet clear.

Empery Digital is not the only company that holds Bitcoin as a strategic reserve while taking on debt. For example, MARA previously used 18,750 Bitcoin as collateral for a $600 million loan. The situation at Empery Digital, however, appears to be under greater pressure, now that the freely available portion of the Bitcoin inventory has declined so sharply.