Empery Digital Pivots from Bitcoin Treasury with $65 Million AI Data Center Deal
July 1, 2026
Empery Digital Pivots from Bitcoin Treasury with $65 Million AI Data Center Deal
Empery Digital (NASDAQ: EMPD), a company that transitioned from electric vehicle manufacturing to a Bitcoin treasury strategy, is shifting its focus again with a $65 million investment in artificial intelligence infrastructure. The move comes after months of shareholder activism and forced Bitcoin sales that dismantled its original crypto-focused business model.
According to an SEC filing and a press release from the Austin-based firm, Empery Digital will acquire a 25% stake in a private entity that is purchasing an industrial property in the Midwest for conversion into an AI data center. The facility currently has approximately 150 megawatts (MW) of existing power capacity, with a recent load study indicating the potential to scale up to 300 MW.
Empery’s pivot to AI infrastructure marks a dramatic departure from its previous strategy. The company rebranded from Volcon Inc. in mid-2025 and built a Bitcoin treasury that peaked at over 4,000 BTC, purchased at an average cost above $117,000 per coin. When Bitcoin’s price fell below $70,000 earlier this year, the unrealized losses exceeded 40%, triggering a shareholder revolt led by Tice P. Brown, who held around 10% of the company. Brown called for CEO Ryan Lane’s resignation and demanded full liquidation of the Bitcoin position.
In response, Empery sold hundreds of BTC across multiple transactions to fund share buybacks and repay a $105 million margin loan. By April, the company had sold 370 BTC at approximately $66,632 each to retire its term loan and released about 1,800 coins previously locked as collateral. Empery currently holds 2,914 BTC in its treasury, according to BitcoinTreasuries.net. Alongside the AI data center deal announcement, the company stated it would discontinue its Bitcoin treasury dashboard, as the reported net asset value based solely on crypto holdings “no longer fully reflects the total NAV of the Company.”
The structure of the AI infrastructure deal involves Empery paying $65 million for a 25% interest in a newly formed entity that will own the converted data center. Hunt Properties, a Dallas-based real estate firm with over $2.5 billion in completed projects since 1987, serves as the managing member through its subsidiary TexStack Infrastructure, holding the remaining 75%. The SEC filing shows Empery made an initial capital contribution of $2.9 million, with the remaining $62.1 million due at closing, expected in the third quarter of 2026. The total property acquisition price is approximately $230 million, with a due diligence review period set to expire on July 29.
Hunt Properties has executed a non-binding letter of intent for a triple net lease with a compute provider serving what the company describes as “a global leader in AI computing hardware.” If finalized, total lease payments could reach $1 billion over the contract’s life, according to the press release. Neither party named the tenant. “This investment is a very unique opportunity to capitalize on the exploding demand for compute and power and partner with some of the best energy operators and investors in North America for the benefit of Empery Digital shareholders,” Lane said in the announcement.
Empery joins a growing list of Bitcoin miners pivoting into AI by repurposing their power assets. Core Scientific signed a multibillion-dollar hosting deal with CoreWeave, while TeraWulf, Hut 8, Iren, and Cipher Mining have all announced AI-related capacity plans. The sector may face funding challenges, as asset manager VanEck estimates a near-term funding gap of roughly $50 billion, with long-term capital needs potentially reaching $221 billion if current plans proceed. Only about 25% of leased AI and high-performance computing capacity has been delivered so far. Unlike the miners, however, Empery has no existing data center operations, no track record of power infrastructure management, and a balance sheet still carrying thousands of Bitcoin acquired well above current market prices.
Source: cryptopolitan
