Bitcoin treasury company Empery Digital is offloading nearly half of its BTC holdings for $87 million

Empire Digital Inc. sold Publicly traded accounts for approximately half of its sales Bitcoin Treasury since early May, using the proceeds to pay down debt, prepare for an AI-related real estate acquisition, and cover mounting legal bills tied to a shareholder lawsuit, according to SEC filing this week.

The company revealed that it has sold 1,400 bitcoins since May 7 at an average price of about $62,200 per coin, generating total revenue of about $87.1 million. Of this total, $10 million is allocated to repay debts due on July 7. The remainder was allocated to a previously announced real estate acquisition – pending completion of the purchase and sale agreement – as well as legal expenses resulting from shareholder lawsuits disclosed in the company’s most recent quarterly report, along with general operating costs.

A real estate deal worth $65 million Announced on June 30aiming for “a 25% ownership (stake) in a private entity that will acquire a strategically located Midwest facility to convert it into a modern AI data center.”

As of Thursday, Empire Digital had 1,514 bitcoins — currently valued at about $96.5 million — and about $73.9 million in cash, with $45 million still owed on debt facilities, the filing shows.

“The investment signals a turnaround and indicates where the company plans to allocate capital moving forward as we focus on delivering the greatest value to our shareholders,” said Ryan Lin, co-CEO of Empire Digital. Decryptionin a statement.

This revelation provides a window into how corporate Bitcoin holders are increasingly treating their cryptocurrency reserves as a source of liquidity, selling positions to meet traditional financial obligations rather than holding the asset as a purely long-term investment.

The most prominent example of this is the Bitcoin giant Recent strategy sales of its $54 billion Bitcoin stock, which was done to boost dividend payments for its preferred stock offerings in an attempt to allay concerns about its ability to meet its financial obligations. Such concerns helped bring down prices strategyMSTR common stock and STRC preferred stock in recent weeks.

The shareholder lawsuit referenced in the filing was previously outlined in Empery Digital’s quarterly report for the period ending March 31, though the company did not detail specific legal costs in the disclosure this week. The filing does not specify a timeline for completing the acquisition of the property or resolving pending litigation.

Empery Digital (EMPD) stock is up nearly 2% on the day through Friday, according to data from Yahoo Financeit was recently traded at $3.87. Shares rose more than 14% last month, but are down about 15% so far this year.

Editor’s Note: This story was updated after publication to include comment from Empery Digital.