Never sell treasury model cracks again as 1,635 BTC is offloaded shrinking Empery reserves by 76% in weeks
Empery Digital sold 1,635 BTC for $102.2 million from July 1 to Aug. 6, cutting holdings to 1,279 BTC. After 954 BTC were pledged as collateral against $35 million of debt, only 325 BTC were unrestricted, down from 1,375 at June 30. Earlier in the year, it had already sold 1,167 BTC to fund share repurchases and debt repayments. The company repaid $20 million after June 30, which reduced pledged collateral from 1,539 BTC to 954 BTC and debt from $55 million to $35 million. Its loan requires 174% collateral coverage, with margin calls below 153% and liquidation risk below 143% if uncured. Empery also faces possible additional cash demands from a proposed data-center property acquisition, with a potential $62.1 million commitment if it closes. Management said cash, operations, derivatives, borrowing, and possible BTC sales should support obligations for more than a year.
