Empery Digital Requires $65M for Midwest Facility Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Empery Digital provided additional information regarding the capital needs associated with its investment in the Midwest facility to be converted into a state-of-the-art AI data center. Empery Digital's funding obligations are limited to the $65M required to close its 25% ownership in the private entity that is acquiring the Midwest facility. Pursuant to the terms of the non-binding LOI, which outlines the expected triple net lease arrangement, the data center build-out costs, power usage and operating costs will be funded solely by the potential tenant. Empery Digital currently has the capital required to fund the $65M investment from its balance sheet and does not intend to issue equity at or near current share price levels. The Company believes that its current net asset value meaningfully exceeds its current market valuation, and that the incremental value associated with the investment in a hyperscaler-anchored property materially increases that valuation gap. Empery Digital intends to continue allocating capital to similar opportunities that it believes deliver significant value to all shareholders. The Company still holds bitcoin but does not currently plan to accumulate more bitcoin and may sell bitcoin to fund this and similar future opportunities.
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About EMPD
Empery Digital Inc., formerly Volcon, Inc., is focused on the bitcoin treasury strategy with the goal of becoming a global aggregator of bitcoin. The Company holds approximately 4,018.36 Bitcoin (BTC). The Company is also engaged in the electric off-road power sports business. The Company sells Volcon electric two-wheeled E-Bikes and motorcycles, utility terrain vehicles, or UTVs, also known as side-by-sides, and golf carts, along with a line of upgrades and accessories. The Company's products include HF1, MN1, and Brat. The HF1 is Volcon's premier performance UTV. The VLCN MN1 has two models: the MN1 Adventurer, a golf cart-style product, which has four seats with a fold-down rear seat to accommodate light cargo, and the MN1 Tradesman, which has two seats with a dump bed for utility purposes. The Brat is a class 2 E-Bike and can be used on-road or off-road.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Empery Digital to Fund Data Center Build-Out with Tenant Covering Operating Costs
- Funding Arrangement: Empery Digital will invest $65 million to secure a 25% stake in the Midwest facility, ensuring a significant position in future data center developments while avoiding the need for equity issuance at current share price levels.
- Lease Agreement Benefits: Under the non-binding LOI, all build-out and operating costs for the data center will be fully covered by the potential tenant, which not only alleviates the company's financial burden but also ensures the sustainability and profitability of the investment.
- Capital Allocation Strategy: The company plans to continue allocating capital to similar hyperscaler opportunities, a strategy that not only enhances the health of its balance sheet but also aims to create long-term value for shareholders.
- Bitcoin Holding Strategy: While the company still holds bitcoin, it does not plan to accumulate more at this time and may sell some to fund future investment opportunities, a flexible asset management strategy that will enhance the company's financial agility.
See More
Empery Digital Invests $65M in AI Data Center Acquisition
- Investment Scale: Empery Digital announced a $65M investment to acquire a 25% stake in a private entity that will convert a Midwest facility into an AI-focused data center, reflecting the company's strong confidence in the AI sector.
- Power Resources: The facility currently has access to approximately 150 MW of power, with expansion potential to nearly 300 MW to meet rising AI computing demand, providing robust support for future business growth.
- Lease Agreement: The investment is backed by a detailed non-binding LOI for a triple net lease with a major compute provider, expected to generate long-term cash flow potential, with total payments potentially reaching $1B over time.
- Strategic Partnership: Empery Digital has formed a strategic partnership with Hunt Properties to pursue additional AI data center and powered land opportunities across the U.S., indicating the company's intent to expand in the AI domain.
See More
Empery Digital Partners with Hunt Properties for Strategic Investment in AI Data Center
- Investment Scale and Structure: Empery Digital is investing $65 million to acquire a 25% stake in a Midwest facility that will be transformed into a state-of-the-art AI data center, with the transaction expected to close in Q3 2026, indicating the company's strategic positioning in the AI sector.
- Power Capacity Expansion: The facility currently has 150 MW of available power, and a recent load study confirmed its ability to nearly double this to 300 MW, addressing the surging demand for AI computing and enhancing the company's competitive edge in the market.
- Lease Agreement Potential: The triple net lease agreement with a leading AI computing hardware provider is projected to generate up to $1 billion in lease payments, ensuring long-term cash flow visibility and further solidifying the company's financial foundation.
- Strategic Partnership: Empery Digital has formed a strategic partnership with Hunt Properties, combining expertise in capital markets and energy infrastructure to jointly develop properties suitable for AI and high-performance computing, aiming to capitalize on rapidly growing market opportunities.
See More
Empery Digital Postpones 2026 Annual Meeting to September
- Annual Meeting Postponed: Empery Digital Inc. announced that its 2026 Annual Meeting of Stockholders, originally scheduled for July 29, 2026, has been postponed to September 23, 2026, at 10:00 a.m. Central Time, transitioning to a virtual format to enhance shareholder participation.
- Meeting Notification Details: Further information regarding the Annual Meeting, including instructions on how to access it, will be provided in the proxy statement and other proxy materials, ensuring shareholders can participate smoothly and receive relevant information.
- Company Strategic Positioning: Empery Digital focuses on digital asset management through a bitcoin strategy, aiming to drive transparency and efficiency via blockchain technology, striving to create long-term value for shareholders and showcasing its foresight and innovation in the digital asset space.
- Forward-Looking Statement Risks: The company cautions that forward-looking statements in the press release may face various risks and uncertainties, including market volatility and increased competition, urging investors to be cautious and not overly rely on these statements.
See More
Empery Digital Repurchases Over 26.2 Million Shares
- Repurchase Program Update: As of April 17, 2026, Empery Digital has repurchased 26,244,657 shares of common stock at an average price of $5.71 per share under its $200 million repurchase program, indicating a strong commitment to enhancing shareholder value through strategic capital management.
- Outstanding Shares Adjustment: Following these repurchases, the total number of shares outstanding has decreased to 29,813,797, factoring in the potential exercise of 2,146,395 pre-funded warrants, which reflects the company's proactive approach to optimizing its capital structure.
- Bitcoin Sales Revenue: During the week ending April 17, 2026, the company sold 20 BTC at an average price of $74,425 per BTC, generating approximately $1.5 million in gross proceeds, thereby bolstering its cash flow and capital flexibility.
- Future Strategic Direction: Management remains focused on increasing bitcoin per share and closing the NAV gap through opportunistic repurchases below NAV, while potentially increasing borrowing on its credit facility to fund future buybacks, demonstrating a keen awareness of market dynamics.
See More
Empery Digital to Hold 2026 Annual Stockholders Meeting
- Annual Meeting Announcement: Empery Digital Inc. has announced that its 2026 Annual Meeting of Stockholders will take place on July 29, 2026, at 10:00 AM Central Time, with access instructions to be provided in the proxy statement and related materials to ensure shareholder participation.
- Company Vision: Empery Digital is focused on unlocking the transformative potential of digital asset management through blockchain technology, employing a bitcoin treasury strategy aimed at aggregating bitcoin and maximizing bitcoin per share, thereby creating long-term value for shareholders.
- Forward-Looking Statements: The press release includes forward-looking statements regarding the company's bitcoin strategy and its ability to create long-term shareholder value, cautioning investors about risks and uncertainties that could lead to actual results differing materially from expectations.
- Risk Considerations: The company faces various risks, including the high volatility of bitcoin prices, increased market competition, and legal and regulatory uncertainties surrounding digital assets, prompting investors to carefully consider these factors when making investment decisions.
See More
Empery Digital to Fund Data Center Build-Out with Tenant Covering Operating Costs
- Funding Arrangement: Empery Digital will invest $65 million to secure a 25% stake in the Midwest facility, ensuring a significant position in future data center developments while avoiding the need for equity issuance at current share price levels.
- Lease Agreement Benefits: Under the non-binding LOI, all build-out and operating costs for the data center will be fully covered by the potential tenant, which not only alleviates the company's financial burden but also ensures the sustainability and profitability of the investment.
- Capital Allocation Strategy: The company plans to continue allocating capital to similar hyperscaler opportunities, a strategy that not only enhances the health of its balance sheet but also aims to create long-term value for shareholders.
- Bitcoin Holding Strategy: While the company still holds bitcoin, it does not plan to accumulate more at this time and may sell some to fund future investment opportunities, a flexible asset management strategy that will enhance the company's financial agility.
See More
Empery Digital Invests $65M in AI Data Center Acquisition
- Investment Scale: Empery Digital announced a $65M investment to acquire a 25% stake in a private entity that will convert a Midwest facility into an AI-focused data center, reflecting the company's strong confidence in the AI sector.
- Power Resources: The facility currently has access to approximately 150 MW of power, with expansion potential to nearly 300 MW to meet rising AI computing demand, providing robust support for future business growth.
- Lease Agreement: The investment is backed by a detailed non-binding LOI for a triple net lease with a major compute provider, expected to generate long-term cash flow potential, with total payments potentially reaching $1B over time.
- Strategic Partnership: Empery Digital has formed a strategic partnership with Hunt Properties to pursue additional AI data center and powered land opportunities across the U.S., indicating the company's intent to expand in the AI domain.
See More
Empery Digital Partners with Hunt Properties for Strategic Investment in AI Data Center
- Investment Scale and Structure: Empery Digital is investing $65 million to acquire a 25% stake in a Midwest facility that will be transformed into a state-of-the-art AI data center, with the transaction expected to close in Q3 2026, indicating the company's strategic positioning in the AI sector.
- Power Capacity Expansion: The facility currently has 150 MW of available power, and a recent load study confirmed its ability to nearly double this to 300 MW, addressing the surging demand for AI computing and enhancing the company's competitive edge in the market.
- Lease Agreement Potential: The triple net lease agreement with a leading AI computing hardware provider is projected to generate up to $1 billion in lease payments, ensuring long-term cash flow visibility and further solidifying the company's financial foundation.
- Strategic Partnership: Empery Digital has formed a strategic partnership with Hunt Properties, combining expertise in capital markets and energy infrastructure to jointly develop properties suitable for AI and high-performance computing, aiming to capitalize on rapidly growing market opportunities.
See More
Empery Digital Postpones 2026 Annual Meeting to September
- Annual Meeting Postponed: Empery Digital Inc. announced that its 2026 Annual Meeting of Stockholders, originally scheduled for July 29, 2026, has been postponed to September 23, 2026, at 10:00 a.m. Central Time, transitioning to a virtual format to enhance shareholder participation.
- Meeting Notification Details: Further information regarding the Annual Meeting, including instructions on how to access it, will be provided in the proxy statement and other proxy materials, ensuring shareholders can participate smoothly and receive relevant information.
- Company Strategic Positioning: Empery Digital focuses on digital asset management through a bitcoin strategy, aiming to drive transparency and efficiency via blockchain technology, striving to create long-term value for shareholders and showcasing its foresight and innovation in the digital asset space.
- Forward-Looking Statement Risks: The company cautions that forward-looking statements in the press release may face various risks and uncertainties, including market volatility and increased competition, urging investors to be cautious and not overly rely on these statements.
See More
Empery Digital Repurchases Over 26.2 Million Shares
- Repurchase Program Update: As of April 17, 2026, Empery Digital has repurchased 26,244,657 shares of common stock at an average price of $5.71 per share under its $200 million repurchase program, indicating a strong commitment to enhancing shareholder value through strategic capital management.
- Outstanding Shares Adjustment: Following these repurchases, the total number of shares outstanding has decreased to 29,813,797, factoring in the potential exercise of 2,146,395 pre-funded warrants, which reflects the company's proactive approach to optimizing its capital structure.
- Bitcoin Sales Revenue: During the week ending April 17, 2026, the company sold 20 BTC at an average price of $74,425 per BTC, generating approximately $1.5 million in gross proceeds, thereby bolstering its cash flow and capital flexibility.
- Future Strategic Direction: Management remains focused on increasing bitcoin per share and closing the NAV gap through opportunistic repurchases below NAV, while potentially increasing borrowing on its credit facility to fund future buybacks, demonstrating a keen awareness of market dynamics.
See More
Empery Digital to Hold 2026 Annual Stockholders Meeting
- Annual Meeting Announcement: Empery Digital Inc. has announced that its 2026 Annual Meeting of Stockholders will take place on July 29, 2026, at 10:00 AM Central Time, with access instructions to be provided in the proxy statement and related materials to ensure shareholder participation.
- Company Vision: Empery Digital is focused on unlocking the transformative potential of digital asset management through blockchain technology, employing a bitcoin treasury strategy aimed at aggregating bitcoin and maximizing bitcoin per share, thereby creating long-term value for shareholders.
- Forward-Looking Statements: The press release includes forward-looking statements regarding the company's bitcoin strategy and its ability to create long-term shareholder value, cautioning investors about risks and uncertainties that could lead to actual results differing materially from expectations.
- Risk Considerations: The company faces various risks, including the high volatility of bitcoin prices, increased market competition, and legal and regulatory uncertainties surrounding digital assets, prompting investors to carefully consider these factors when making investment decisions.
See More
