In the past, the hottest business on Wall Street was "hoarding coins."
The public thought that as long as Bitcoin was written into the balance sheet, these companies were steadfast long-term believers.
But in fact, it was just a leveraged game played during favorable conditions.
When the asset price fell below the cost line, the first player to publicly admit defeat has emerged.
I. Buying at $117,000, Selling at $62,000
Empery Digital was formerly known as Volcon, originally an electric off-road motorcycle manufacturer.
In July 2025, the company changed its name and pivoted, starting to buy Bitcoin in large quantities.
It was a time when prices were at a peak. The company accumulated around 4,000 BTC, with an average cost of approximately $117,600, representing a total investment of about $470 million.
It later increased its holdings to a peak of 4,081 BTC.
By 2026, the company made multiple disposals. On July 10, it disclosed the sale of another 1,400 BTC, raising $87.1 million at an average price of about $62,000.
Average purchase price: $117,600; average selling price: $62,000.
Just for these 1,400 coins, the loss relative to the cost price is approximately $77 million.
In terms of figures, the company's holdings are now reduced to 1,514 BTC, and it holds approximately $73.9 million in cash on its books.
Yet, this was supposed to be a strategic asset for long-term holding. Why choose to sell at a loss when the price has nearly halved?
II. The Reversal That Occurred Within Three Months
Behind the sale of coins is a ledger that doesn't add up.
As Bitcoin's price fell from its peak, by February of this year, the company's paper loss on its Bitcoin holdings was about 46%, equivalent to an unrealized loss of approximately $220 million.
At that time, the company's total market capitalization had fallen to about $135 million. The money lost from buying Bitcoin had already exceeded the entire value of the company.
This triggered internal conflict.
In February this year, a shareholder holding 9.8% publicly demanded the CEO's resignation and called for liquidating all Bitcoin to return cash to shareholders.
Management refused to liquidate, even privately proposing to repurchase that shareholder's stake, an offer the shareholder rejected.
In March, the company also announced plans to raise up to $1.3 billion to increase its Bitcoin holdings.
Yet just a few months later, the coins were sold, and the money was used to fill three holes.
On July 7, the company used part of the proceeds to repay $10 million in debt; it still owes $45 million.
The remaining funds are earmarked for preparing for the acquisition of an equity stake in an AI data center and for paying legal fees related to shareholder lawsuits.
But was selling Bitcoin for a massive cash infusion merely to repay debt?
III. The End of Chasing Trends Is Computing Power
The most noteworthy aspect is the final destination of this money.
The largest expenditure from Empery Digital's Bitcoin sale was $65 million used to acquire a 25% equity stake in a yet-to-be-converted AI data center facility in the Midwestern United States.
Co-CEO Ryan Lane led the pivot. The company announced discontinuing its Bitcoin holdings dashboard, shifting its strategic focus to AI infrastructure projects.
From electric motorcycles, to a Bitcoin treasury, and now to AI data centers, this company's business trajectory perfectly aligns with every trending hype cycle.
But this is not an isolated case; peers are making similar moves.
In Q1 this year, Bitcoin mining giant MARA sold over 20,000 BTC to repay debt; by Q2, another prominent institution, Strategy, also began selling coins to pay preferred stock dividends.
This is the so-called "treasury model."
Its core logic is to issue debt to buy coins, using the rising coin price to drive up the stock price.
However, this model operates under one essential condition: the coin price cannot fall below the cost of capital.
Once it falls below, with debt pressure mounting, the company is forced to sell coins for survival.
Currently, Empery Digital holds 1,514 BTC and a bundle of AI data center dreams.
It turns out, the faith on the balance sheet has a clearly defined price.
And for this company, its price tag is a half-off clearance sale.
