Key Takeaways:
Empery Digital is abandoning its pure Bitcoin treasury model for a $65M bet on AI infrastructure after shareholder pressure forced it to sell hundreds of coins at a loss.
The former electric-vehicle maker turned Bitcoin holder is paying $65M for a 25% stake in a Midwest AI data center project with up to 300 megawatts of capacity, marking a strategic retreat from a crypto treasury that once held more than 4,000 Bitcoin.
"This investment is a very unique opportunity to capitalize on the exploding demand for compute and power and partner with some of the best energy operators and investors in North America for the benefit of Empery Digital shareholders," Chief Executive Officer Ryan Lane said in a statement.
The facility, acquired through a partnership with Dallas-based Hunt Properties and its TexStack Infrastructure subsidiary, comes with roughly 150 MW of existing power capacity that a recent load study showed could nearly double to 300 MW for AI workloads. Empery made an initial capital contribution of $2.9M, with the remaining $62.1M due at closing in the third quarter. The total property price is about $230M. Hunt Properties has signed a non-binding letter of intent for a triple net lease with a compute provider serving what the company described as "a global leader in AI computing hardware," with potential lease payments reaching $1B over the contract's life.
The pivot comes after Empery's Bitcoin treasury strategy unraveled. The company purchased its stash at an average cost above $117,000 per coin, and when Bitcoin fell below $70,000 earlier this year, unrealized losses exceeded 40%. Shareholder Tice P. Brown, who held about 10% of the company, called for Lane's resignation and demanded full liquidation of the Bitcoin position. Empery sold 370 BTC at roughly $66,632 each to retire a $105M margin loan and released about 1,800 coins previously locked as collateral. It now holds 2,914 BTC and is discontinuing its Bitcoin treasury dashboard, saying the reported net asset value based on crypto holdings alone "no longer fully reflects the total NAV of the Company."
Empery, which rebranded from Volcon Inc. in mid-2025, joins a growing list of companies repurposing power assets for AI infrastructure. Core Scientific signed a multibillion-dollar hosting deal with CoreWeave, while TeraWulf, Hut 8, Iren and Cipher Mining have all announced AI-related capacity plans. Unlike those firms, Empery has no existing data center operations or track record of power infrastructure management — its balance sheet still carries thousands of Bitcoin acquired well above current market prices.
The broader AI data center sector faces a near-term funding gap of roughly $50B, according to asset manager VanEck, which estimates long-term capital needs could reach $221B if current plans proceed. Only about 25% of leased AI and high-performance computing capacity has been delivered so far, the firm said.
Empery's Bitcoin treasury peaked above 4,000 BTC after the company adopted the strategy in mid-2025. The subsequent selloff and shareholder revolt highlight the risks of corporate Bitcoin accumulation at cycle highs. The company's stock fell 3.8% in premarket trading after the AI data center announcement, according to Investing.com data, suggesting investors remain skeptical of the strategic shift.
Clear Street acted as financial advisor and Ropes & Gray LLP served as legal counsel to Empery Digital. Lake Street Capital Markets advised the acquiring entity, with Davis Polk & Wardwell LLP as legal counsel.
For investors, Empery's pivot raises questions about the viability of the corporate Bitcoin treasury model. The company now holds 2,914 BTC at a significant unrealized loss while betting on an AI infrastructure sector where it has no operating history. The stock's 3.8% decline suggests the market is pricing in execution risk.
This article is for informational purposes only and does not constitute investment advice.
