TL;DR
Empery Digital has agreed to invest $65 million in a Midwest data center project focused on artificial intelligence workloads, signaling a shift in capital allocation after volatility in its Bitcoin treasury performance.
Originally rebranded from Volcon Inc in 2025, Empery Digital expanded its Bitcoin treasury above 4,000 BTC, acquired at an average cost above $117,000 per coin. When Bitcoin dropped below $70,000 earlier this year, the firm faced unrealized losses of more than 40%. Shareholder pressure increased as investor Tice P Brown, holding around 10% of the company, demanded leadership changes and liquidation of the Bitcoin strategy. The company responded by selling hundreds of BTC, including 370 BTC at about $66,632, to repay a $105 million margin loan and stabilize its balance sheet.
The $65 million deal gives Empery Digital a 25% stake in a newly formed entity developing a Midwest AI data center. The site includes around 150 MW of existing power capacity, with potential expansion to 300 MW following recent load studies. Hunt Properties, through its TexStack Infrastructure unit, retains 75% control and manages development. Empery contributed an initial $2.9 million, with $62.1 million due at closing expected in 2026. The total property is valued at $230 million, while a proposed lease structure could generate nearly $1 billion in long-term payments.
The AI infrastructure shift among former Bitcoin miners continues as firms redirect power assets toward compute demand. Companies like Core Scientific, TeraWulf, Hut 8, Iren, and Cipher Mining are expanding hosting and data center capacity linked to artificial intelligence workloads. Demand for high-performance compute is rising faster than available supply, while analysts from VanEck estimate a near-term funding gap of $50 billion and potential long-term capital needs of $221 billion, with only about 25% of leased capacity currently delivered.
Empery’s repositioning reflects a dual exposure strategy across Bitcoin holdings and AI compute infrastructure, aligning balance sheet assets with two expanding digital sectors. The company’s future performance will depend on execution in data center development and the stability of its remaining 2,914 BTC treasury, as capital allocation continues to evolve going forward market conditions.
