Cryptocurrencies have gained significant popularity, particularly among Digital Asset Trading (DAT) companies. Reflecting this trend, more than 193 firms now hold Bitcoin [BTC] on their balance sheets.
One example is Empery Digital Inc., which began aggressively accumulating and holding BTC in 2025 as major companies embraced crypto.
However, with BTC now struggling, the company has faced a massive internal revolt, especially from shareholders, who are worried about market uncertainty.
In a major setback for Empery Digital Inc., a key shareholder staged a public revolt, challenging the company’s BTC‑focused strategy.
Tice Brown demanded that the firm sell all its BTC holdings, return the proceeds to investors, and that both the CEO and Board of Directors resign. In his letter, Brown, who owns 9.8% of the company, accused management of enriching themselves at the expense of shareholders.
Brown decried that the firm’s leadership privately approached him, offering him a deal to buy back his shares at 100% of the firm’s mNAV.
However, he refused the proposal, arguing that such moves aimed to preserve management’s position rather than investors’ capital.
At the same time, the shareholder criticized the company’s buyback program, accusing it of exploiting shareholders. In response to the letter, the firm accused Mr. Brown of furthering self-interest and misrepresentation of facts.
The company argued that the attempted repurchase of his shares was in the company’s and its shareholders’ best interests.
Undoubtedly, the shareholders’ call for a selloff of Bitcoin holdings is significant, as Empery holds a substantial BTC position.
Data from Bitcoin Treasuries showed that Empery Digital Inc. holds 4081 BTC, worth $265.7 million, making it the 23rd-largest corporate holder of Bitcoin.
With an average cost basis of $117k, Empery’s holdings are currently down 44%. Equally, the company has not made any purchases since September 2025.
With BTC in a strong downtrend, the company’s asset value dropped from $509 million in October to $265 million, a $244 million decline.
Likewise, the company’s stock value has plummeted 49% over the past six months. When BTC traded above $120k, EMPD traded above $15.
Since then, the share price has plunged to a low of $3.2, indicating the direct correlation between BTC price and the company’s stock value.
Therefore, if Empery dumps off its holdings as requested by a major shareholder, it will weaken already strained BTC. Under such circumstances, BTC continues to decline, and EMPD will drop further, threatening shareholders’ positions.
