Empery Digital sold 1,400 BTC for about $87.1 million as the Nasdaq-listed company shifts capital toward AI infrastructure, debt repayment, and legal costs, while prediction market odds show rising concern that Bitcoin could revisit $50,000.
Empery Digital Cuts Bitcoin Holdings for AI Pivot
Empery Digital disclosed in a July 10 filing that it sold 1,400 Bitcoin since May 7 at an average price of about $62,200 per BTC. The sale reduced the company’s Bitcoin holdings by nearly half and marked its largest reduction to date.
The company said it used part of the proceeds to repay $10 million of outstanding debt on July 7. Empery also plans to use funds for legal expenses tied to shareholder litigation, general operations, and a previously announced property acquisition.
The remaining proceeds will help finance a $65 million commitment to an AI data center project. The investment would give Empery a 25% stake in a Hunt Properties-affiliated venture that is buying a power-rich industrial site in the United States.
The partners plan to convert the site into an AI data center campus. The facility has about 150 megawatts of power capacity and could expand to 300 megawatts, reports said.
Bitcoin Treasury Strategy Slows
Empery raised more than $500 million last July to launch its Bitcoin treasury strategy after shifting away from electric powersports vehicles. The company, then known as Volcon, later accumulated more than 4,000 BTC and became one of the larger public Bitcoin holders.
As of July 10, Empery still held 1,514 BTC and about $73.9 million in cash. The company also had about $45 million of debt outstanding.
The latest sale places Empery among companies reducing Bitcoin holdings after using treasury models inspired by Strategy. Some public firms built large BTC positions during the prior market cycle, betting that Bitcoin exposure could raise shareholder value over time.
That model has come under more pressure as Bitcoin trades below earlier highs and investors weigh whether corporate BTC holders will continue selling to fund debt, dividends, buybacks, or new business plans.
Empery shares rose slightly on Friday, but the stock remains down about 18% year-to-date and roughly 82% since the company launched its Bitcoin treasury strategy last July. The company has also removed its Bitcoin treasury dashboard, saying BTC holdings no longer fully represent its value.
Bitcoin Downside Odds Rise as AI Demand Pulls Capital
Prediction market data showed a 46% chance of Bitcoin reaching $50,000 and a 64% chance of touching $55,000. Upside odds stood at 94% for $65,000, 77% for $70,000 and 51% for $75,000.
Bitcoin recently traded near $64,000 after rebounding from a bear-market low near $57,700. CryptoQuant said Bitcoin recovered about 11% from that low, while demand improved from a sharp contraction in early June.
Source: Polymarket
Standard Chartered has taken a more positive view on Bitcoin near current levels. Geoffrey Kendrick, the bank’s head of digital assets research, described Bitcoin around $64,000 as a “screaming buy” and kept a $100,000 year-end target.
Kendrick also said concerns over Strategy’s recent BTC sales are “mostly noise.” He said Strategy’s issue is more about explaining a new capital model than showing balance sheet weakness, adding, “I see what is happening at MSTR right now as a communication challenge, nothing more.”
