Empery Digital (NASDAQ: EMPD) has recently executed the sale of 60 BTC from its treasury, generating approximately $4 million. This strategic move aims to finance its ongoing share buyback program, which is valued at $200 million. The decision to liquidate a portion of its Bitcoin holdings comes as the cryptocurrency market experiences significant volatility, with other notable investors, including Michael Saylor and ProCap Financial led by Anthony Pompliano, actively expanding their positions.
During the last week of February, Empery Digital sold its Bitcoin at an average price of $66,583 per coin. The company, which transitioned from its previous identity as an electric vehicle manufacturer known as Volcon Inc. to a Bitcoin-focused firm, is currently facing an unrealized loss exceeding 41%. This loss stems from earlier acquisitions of Bitcoin at a much higher price of $117,607 per coin, significantly affecting its market position.
As of its latest filings, Empery Digital”s stock is trading at a substantial discount compared to its Net Asset Value (NAV), with a basic market NAV (mNAV) reported at 0.590, which is nearly 40% lower than its actual market worth. In an effort to bridge the gap between NAV and mNAV, the company”s management has successfully repurchased over 18.6 million shares at an average price of $6.21. Currently, Empery Digital has about 32.7 million shares outstanding.
Investor discontent is growing as shareholders push for a leadership overhaul at Empery Digital. A significant stakeholder, who owns around 10.3% of the company, has openly criticized the current CEO, Ryan Lane, and the board for what he describes as a failed Bitcoin strategy that has severely diminished shareholder wealth. This dissatisfaction has spurred activist investors, including ATG Capital, to nominate nine new director candidates for the upcoming 2026 annual meeting.
Critics of the board allege that it has taken measures to entrench itself and has implemented “poison pill” strategies to thwart shareholder influence. Notably, allegations have surfaced about company employees engaging in day trading of Bitcoin derivatives worth hundreds of millions of dollars. The discontent reached a peak when the aforementioned shareholder reported an incident where he was reportedly removed by security during a confrontation regarding the liquidation of Bitcoin holdings.
Despite the turmoil within Empery Digital, other players in the cryptocurrency market remain optimistic. ProCap Financial recently announced the acquisition of an additional 450 BTC, complementing its own share repurchase initiatives. Meanwhile, Strategy made headlines by spending over $200 million on Bitcoin, enhancing its holdings to lower the average cost basis of its substantial reserve of 720,737 BTC to below $76,000.
