Empery Digital's Bitcoin Holdings Face Shareholder Rebellion After 49% Stock Drop

Cryptocurrencies are becoming increasingly popular, particularly among Digital Asset Trading (DAT) firms. Currently, over 193 companies have amassed Bitcoin [BTC] in their financial portfolios. One such company is Empery Digital Inc., which began aggressively acquiring BTC in 2025, taking advantage of the growing crypto acceptance among major corporations. However, recent struggles in the Bitcoin market have led to a significant internal revolt at Empery, especially from concerned shareholders.

Key Takeaways

Shareholders are pushing for Empery Digital Inc. to sell its Bitcoin holdings amid market uncertainty.
Tice Brown, a major shareholder owning 9.8% of the company, has publicly called for management changes.
Empery holds 4,081 BTC, valued at approximately $265.7 million, making it the 23rd largest corporate Bitcoin holder.
The company's stock has dropped 49% in six months, closely aligning with the decline in Bitcoin prices.

Bitcoin [BTC]

Internal Discontent Over Bitcoin Strategy

In a significant development for Empery Digital Inc., a notable shareholder, Tice Brown, openly challenged the company's BTC-centric strategy. He is demanding that the firm liquidate all its Bitcoin assets, repay investors, and that both the CEO and the Board of Directors step down. Brown, who holds 9.8% of the company, criticized the management for enriching themselves at the shareholders' expense.

In his letter, Brown disclosed that company leadership had approached him, offering to buy back his shares at full value based on the firm's minimum net asset value (mNAV). He declined this offer, arguing that it served to protect management’s interests rather than those of investors. He also condemned Empery’s buyback program as exploitative towards shareholders. In rebuttal, the firm accused Brown of pursuing self-interest and misrepresenting the situation, claiming that the proposed repurchase of shares was beneficial for both the company and its shareholders.

Evaluating Empery’s Bitcoin Holdings

The shareholders’ push to sell off Bitcoin holdings is particularly important given Empery’s considerable BTC assets. According to data from Bitcoin Treasuries, Empery Digital Inc. possesses 4,081 BTC, valued at around $265.7 million, positioning it as the 23rd largest corporate Bitcoin holder.

Empery Bitcoin holdings

With an average purchase price of $117,000, Empery’s Bitcoin assets have decreased by 44%. Notably, the company has not made any Bitcoin purchases since September 2025. With Bitcoin currently in a downtrend, the firm’s asset value has fallen from $509 million in October to $265 million, a significant decline of $244 million.

Furthermore, over the past six months, the company’s stock has dropped by 49%. At its peak, when Bitcoin was valued above $120,000, Empery shares traded above $15.

Empery stock to BTC

Now, the share price has significantly fallen to a low of $3.2, demonstrating the close relationship between Bitcoin prices and the company's stock value. If Empery were to offload its holdings as requested by a key shareholder, it could further pressure a struggling Bitcoin market. In this scenario, continued declines in Bitcoin value could lead to even lower EMPD prices, jeopardizing shareholder interests.

Conclusion

The internal conflict at Empery Digital highlights the challenges faced by companies heavily reliant on cryptocurrency in a volatile market. As shareholders call for substantial changes, the future of the company and its Bitcoin strategy remains uncertain.