Nasdaq-listed Empery Digital executed a $14.5 million stock buyback program, repurchasing shares below its net asset value while maintaining a substantial Bitcoin treasury.

Executive Summary

Empery Digital, a Nasdaq-listed company with a significant Bitcoin treasury, has executed a $14.5 million share buyback plan. This initiative involves repurchasing shares at prices below the company's net asset value, signaling management's confidence in its valuation and long-term strategy. The company holds 4,081.39 BTC, acquired at an average price of $117,517 per BTC, totaling approximately $480 million in investment.

The Event in Detail

Empery Digital's share repurchase program has seen the company buy back 1,626,007 shares of its common stock at an average price of $7.23 per share. This action is part of a larger $100 million authorized share repurchase program, with approximately $88 million remaining available for future repurchases. The company's stock currently trades at $6.98, having fallen over 80% year-to-date, making the buyback strategy particularly relevant at prices below net asset value. To facilitate these repurchases, Empery Digital secured a $25 million committed borrowing facility, with potential access to an additional $75 million through an uncommitted facility.

As of recent disclosures, Empery Digital maintains a treasury of 4,081.39 BTC. The total investment in these digital assets amounts to approximately $480 million, reflecting an average acquisition cost of $117,517 per Bitcoin. The company adopted its Bitcoin treasury strategy on July 17, 2025, with the stated objective of becoming a leading, low-cost, capital-efficient, and globally trusted aggregator of Bitcoin.

Business Strategy & Market Positioning

Empery Digital's capital allocation strategy is centered on increasing Bitcoin per share for its shareholders through accretive share repurchases. This approach aims to leverage market conditions where its stock trades below net asset value, thereby enhancing shareholder value. The company's financial position is supported by a market capitalization of $331.56 million and a strong current ratio of 4.56, indicating substantial liquidity. Empery Digital also maintains an an electric vehicle division, Empery Mobility, diversifying its operational footprint alongside its digital asset strategy.

This strategy draws parallels with other public companies engaging in digital asset treasuries and share buybacks. For example, SharpLink Gaming Inc., a significant holder of Ethereum, initiated a $1.5 billion share buyback program. SharpLink repurchased 939,000 shares at an average of $15.98, asserting its stock as undervalued. With $3.6 billion in staked ETH and no outstanding debt, SharpLink emphasizes shareholder returns while preserving long-term Ethereum exposure. Both companies demonstrate a conviction in their digital asset holdings and use buybacks to express confidence in their intrinsic value while enhancing per-share metrics.

Market Implications

The corporate action by Empery Digital, a notable Bitcoin holder, could influence investor perception of other public companies employing similar Bitcoin treasury strategies. The share buyback, executed below net asset value, signals management's confidence in the company's valuation and its Bitcoin holdings. However, the high average acquisition price of $117,517 per BTC introduces potential unrealized losses, depending on current Bitcoin market prices, which could introduce uncertainty regarding long-term financial health if prices remain depressed relative to this average.

Should Empery Digital's strategy successfully increase Bitcoin per share and deliver positive returns, it might encourage similar capital allocation strategies among other companies with digital asset treasuries. Conversely, if the strategy falters due to sustained lower Bitcoin prices, it could highlight the risks associated with significant corporate exposure to volatile digital assets. This move by Empery Digital contributes to the evolving narrative of corporate adoption in the Web3 ecosystem, reflecting a continued commitment to integrating digital assets into traditional corporate finance models.