Empery Digital Abandons Bitcoin Treasury Strategy for AI Data Centers

As artificial intelligence gains momentum worldwide, high-speed computing capacity and data center infrastructure have become fiercely contested assets in the technology industry. Empery Digital, a treasury company that previously held Bitcoin as a corporate reserve asset, is at a pivotal point in its business transformation. The decision reflects both strong demand for AI computing infrastructure and a broader shift by cryptocurrency-holding companies to reallocate assets in pursuit of more profitable technology opportunities.

Bitcoin treasury company Empery Digital announced in July 2026 that it had sold nearly half its Bitcoin reserves, disposing of 1,400 tokens for $87.1 million. The proceeds will fund construction of a new AI data center in the U.S. Midwest. Its shares rose after the announcement, signaling market and investor support for its pivot to artificial intelligence infrastructure.

Empery Digital holds Bitcoin as a corporate treasury asset, leaving its share price and net asset value highly exposed to cryptocurrency markets and capital-allocation decisions. A shareholder with a stake of about 10% is now publicly challenging that strategy, arguing that hoarding Bitcoin has failed to create value for all shareholders. The dispute also highlights the governance, discount and liquidity risks of the Bitcoin treasury model.

The latest demands include selling 4,000 Bitcoin and replacing Empery Digital's CEO and board. The same report noted Circle's strong fourth-quarter performance. PayPal, meanwhile, has continued to pursue its stablecoin strategy but has yet to reverse its share-price decline, renewing scrutiny of the effectiveness and management accountability of corporate crypto-asset strategies.

Empery Digital, formerly electric off-road vehicle maker Volcon, pivoted to a Bitcoin treasury strategy on July 17, 2025, rapidly accumulating assets through a private placement of about $501 million. It held 4,081 Bitcoin at the end of 2025, acquired for about $480 million. The stock’s discount to net asset value has made capital allocation and corporate governance central to a shareholder dispute.

On February 23, 2026, Tice P. Brown, who beneficially owned about 9.8% of the company, sent a letter to the board demanding the immediate sale of all its Bitcoin, the return of the proceeds, and the resignations of CEO Ryan Lane and every director. Brown said the company had offered on February 18 to repurchase his entire stake at 100% of market net asset value and submitted a written proposal on February 23, but he rejected it. Empery Digital responded on February 24, accusing him of distorting the facts.