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Empery Digital sells 1,635 BTC, shrinking pledged reserves by 76%

The Bitcoin-treasury firm ended Aug. 6 with 325 BTC unrestricted, down from 1,375 at June 30, while collateral pledged against $35 million of debt fell to 954 BTC.

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Empery Digital sold 1,635 BTC between July 1 and Aug. 6 for $102.2 million, leaving the Bitcoin-treasury company with 1,279 BTC, according to its latest quarterly filing, as covered by CryptoSlate. The company’s pledged collateral dropped to 954 BTC from 1,539 BTC after debt declined to $35 million from $55 million.

After excluding the 954 BTC pledged as collateral, Empery had 325 BTC unrestricted, down from 1,375 at June 30. CryptoSlate also noted that 954 BTC was restricted as collateral against $35 million of debt, with the firm previously used BTC sales to address cash needs and repay loan obligations earlier in the year.

The filing described risk mechanics tied to the loan, including a margin call below 153% collateral and potential liquidation below 143% if the breach is not cured within 12 hours. Empery said it made collateral top-ups of 576 BTC on Feb. 4 and 186 BTC on June 3, and later eased pressure after June 30 by repaying $20 million.

CryptoSlate further reported that a proposed data-center property acquisition could add a $62.1 million claim on Empery’s cash, contingent on closing. At June 30, the company reported $3.7 million of cash including restricted cash and a $5.7 million working-capital deficit, with management saying a mix of cash, operations, derivatives proceeds, borrowing, and potential Bitcoin sales should cover planned operations.

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