- Empery Digital sold 48% of its Bitcoin holdings in three months, generating $87.1 million.
- The firm allocated most of the funds generated to a property deal linked to an AI project.
- Many corporate holders are treating their Bitcoin reserves as more of a liquidity source.
The continued selling of BTC holdings by Bitcoin treasuries is raising doubts among crypto community members over the cryptocurrency’s future. Arguably still the flagship crypto and leading digital asset by market capitalization, Bitcoin has recently experienced a massive dump, particularly by institutional holders, most of whom are rotating capital into the artificial intelligence (AI) sector.
Empery Digital Sells BTC Holding
According to reports, the Bitcoin Treasury firm, Empery Digital, has become the latest institutional holder to announce a massive BTC selloff. The company said it sold a cumulative 1,400 BTC since May for approximately $87.1 million, using the proceeds to fund an AI data center deal, legal expenses, and other operational costs, reducing its original Bitcoin holdings by 48%.
Empery Digital’s disclosure reveals it started selling portions of its Bitcoin holdings on May 7. With a cumulative average of $62,200 per BTC, it allocated $10 million of the $87.1 million returns toward retiring a debt on July 7, earmarking the remaining funds for a previously announced property acquisition and legal expenses stemming from stockholder litigation, disclosed in its latest quarterly report.
Focusing Away From Bitcoin Investment
Sharing further details about its latest dealings, Empery Digital confirmed it allocated $65 million of the revenue to a property deal it had earlier announced on June 30. That is or 25% ownership in a private entity that is acquiring a strategically located Midwest facility that would eventually be converted into a state-of-the-art AI data center.
After selling 1,400 BTC, Empery Digital had a balance of 1,514 BTC worth approximately $96.5 million. It also had about $73.9 million in cash while running an outstanding debt of $45 million on its facility, according to the firm’s filing.
The company’s Co-CEO, Ryan Lane, described the latest investment as a shift indicating where the firm plans to allocate capital in the future. He considers it a focus on the area where they intend to deliver the most value to shareholders.
A New Direction for Bitcoin Treasuries?
Lane’s position and the actions of several Bitcoin treasuries reflect the overall direction of corporate holders, most of whom appear to treat the cryptocurrency more as a liquidity source rather than a store of value. Unlike in the past, these firms are selling down their Bitcoin reserves to meet conventional financial obligations, veering away from their original plans of holding the asset as a long-term investment.
Related: Peter Schiff Says Strategy’s Bitcoin Sales Mark End of Saylor’s Never-Sell Era
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