Empery Digital Exits BTC Treasury for $20M AI Infrastructure Bet

Woofun AI reports that Empery Digital has executed a definitive strategic pivot, abandoning its Bitcoin (BTC) treasury strategy to invest $20 million in Cardinal Data Power, a developer of AI infrastructure.

The capital injection secures an approximately 8% stake in Cardinal Data Power as part of a broader $70 million Series A financing round. This funding is earmarked for the development of a 750-megawatt data center campus located in West Texas. The project timeline projects initial power delivery in 2027, with capacity expanding to approximately 1 gigawatt by 2029 and eventually exceeding 5 gigawatts. Cardinal Data Power specializes in creating powered campuses for artificial intelligence and high-performance computing workloads.

Structurally, the company integrates power generation, natural gas supply, and electrical infrastructure to accelerate the deployment of large-scale computing sites.

Empery Digital’s shift follows a period of significant asset liquidation and governance turmoil. The company adopted its Bitcoin treasury strategy in mid-2025 after transitioning from its former electric powersports business.

However, earlier this month, it disclosed the sale of about 1,400 Bitcoin over a two-month period, generating roughly $87.1 million. These proceeds were utilized to fund AI infrastructure investments and repay debt. The divestment occurred against a backdrop of mounting pressure from shareholder Tice P. Brown, who demanded the abandonment of the treasury strategy and sought the resignation of the chief executive officer and board.

Woofun AI data shows that following these transactions, Empery’s Bitcoin holdings were reduced to 1,514 BTC. Prior to initiating position trims in March, the company had held as many as 4,081 BTC, according to data from BitcoinTreasuries.NET.

The broader Bitcoin treasury model is undergoing rapid evolution, characterized by divergent corporate strategies. While some entities double down on accumulation, others are pivoting, restructuring, or exiting the model entirely. Satsuma Technology emerged as one of the first Bitcoin treasury companies to unwind its structure. On July 20, shareholders voted overwhelmingly to sell the company’s Bitcoin holdings, return substantially all capital to investors, and delist from the London Stock Exchange. More than 90% of votes cast supported both the capital return and the delisting resolution.

Further fragmentation is evident in the collapse of proposed industry consolidations. A merger between Tether-backed Twenty One Capital, Strike, and Bitcoin miner Elektron Energy was scrapped earlier this week. This dissolution leaves Strike as a standalone company, while discussions between Twenty One and Elektron continue independently. Despite the structural changes, Twenty One remains one of the world’s largest corporate Bitcoin holders with 43,514 BTC, ranking second only to Strategy among publicly tracked corporate treasuries.

New variations of the treasury concept are also emerging. Last week, Bitcoin analyst Lyn Alden co-founded Orange Juice HODLINGS, a permanent-capital holding company backed by Mexican billionaire Ricardo Salinas. The entity launched with $40 million in initial funding. Rather than merely accumulating Bitcoin, the company plans to acquire and hold profitable businesses indefinitely, using Bitcoin as its treasury reserve asset. This approach combines long-term business ownership with a Bitcoin-backed balance sheet, marking a distinct departure from pure accumulation models.