DeutschFrom electric car manufacturer to Bitcoin treasury – and now a crisis case? The dispute is escalating at Nasdaq-listed company Empery Digital. A major shareholder is demanding nothing less than a radical cut: “Sell all Bitcoin immediately.” Only last summer, the company had reinvented itself. E-vehicle provider Volcon became Empery Digital, turning industrial visions into a crypto strategy.
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Around $500 million flowed into the coffers – and almost all liquidity was invested in Bitcoin. A breakthrough, or so it seemed. But the market crash has caused the experiment to falter. The stock fell from $21 to under $4. A crash that is making investors nervous. The company recently announced a $200 million share buyback program. But that didn’t reassure everyone.
Bitcoin drama at Nasdaq firm: “Sell all BTC immediately”
Tice Brown, an activist investor with a stake of around 9%, is going on the offensive. His demand is clearly stated: the CEO should resign, and the board of directors should be completely replaced. And above all: “All Bitcoin must be sold and the money distributed to shareholders.” A direct challenge to their own balance sheet. Exactly how many Bitcoins Empery Digital holds has not been officially disclosed.
It is known that purchases were made in the summer near the $100,000 per coin mark – with a volume of nearly half a billion dollars. Market observers therefore estimate around 4,000 to 5,000 BTC. Depending on the current price, this means significant paper losses. The problem extends beyond a single company. The decline in Bitcoin’s price is weighing on numerous so-called treasury firms – companies that hold large portions of their reserves in cryptocurrencies.
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Prominente examples include Strategy and Bitmine. According to public reports, both show billions in unrealized losses – around $9 billion and $8.4 billion, respectively. What began as a bold bet on digital gold is turning into a stress test for some. The idea behind the model is simple: Bitcoin as an inflation hedge, a store of value, and a strategic reserve. If the price rises, shareholders benefit twice – through the balance sheet and through market speculation. If it falls, the narrative collapses.
Empery Digital under crypto pressure
A governance debate is now being added at Empery Digital. Activist investors are using price weakness to build pressure. The call to liquidate Bitcoin holdings is radical, but understandable from the perspective of unsettled shareholders. Those who got in at $21 are looking at painful losses. At the same time, the fundamental question arises: Are crypto treasury models sustainable corporate strategies or leveraged market bets? As long as Bitcoin remains volatile, the business model will remain nerve-wracking.
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It remains to be seen how the executive board and the board of directors will react. A complete exit from Bitcoin would be a spectacular signal – reaching far beyond the company. For the crypto market, it would be another indication of how closely hope and risk are intertwined. One thing is certain: the debate surrounding Empery Digital shows that digital treasuries are not a one-way street. Anyone betting everything on Bitcoin needs strong nerves – or patient shareholders. (mck)
