Key Takeaways:
Empery Digital's $65 million bet on AI infrastructure marks the end of its Bitcoin treasury experiment, as the former electric vehicle maker joins a wave of crypto-adjacent companies repurposing power assets for the cloud arms race.
Empery Digital (NASDAQ: EMPD), the Austin-based firm that rebranded from Volcon Inc. in mid-2025, said it will acquire a 25% stake in a private entity purchasing a Midwest industrial property for conversion into an AI data center. The facility comes with roughly 150 megawatts of existing power capacity, with a recent load study showing it could scale to about 300 MW — enough to power roughly 100,000 homes at full buildout.
"This investment is a very unique opportunity to capitalize on the exploding demand for compute and power and partner with some of the best energy operators and investors in North America for the benefit of Empery Digital shareholders," Chief Executive Ryan Lane said in a statement.
The $65 million investment buys a minority interest in a newly formed entity alongside Hunt Properties, a Dallas-based real estate firm with more than $2.5 billion in completed projects since 1987. Hunt holds the remaining 75% through its subsidiary TexStack Infrastructure. Empery made an initial capital contribution of $2.9 million, with the remaining $62.1 million due at closing, expected in the third quarter of 2026. The total property acquisition price is approximately $230 million, with a due diligence review period set to expire on July 29.
The deal comes after a brutal unwind of Empery's Bitcoin treasury, which peaked above 4,000 BTC purchased at an average cost north of $117,000 per coin. When Bitcoin fell below $70,000 earlier this year, unrealized losses exceeded 40%. Shareholder Tice P. Brown, who held roughly 10% of the company, called for Lane's resignation and demanded full liquidation of the Bitcoin position. Empery sold 370 BTC at about $66,632 each to retire a $105 million margin loan and released roughly 1,800 coins previously locked as collateral. It currently holds 2,914 BTC, according to BitcoinTreasuries.net.
From Bitcoin Treasury to AI Landlord
Empery is joining a crowded field of crypto miners pivoting into AI by repurposing their power assets. Core Scientific signed a multibillion-dollar hosting deal with CoreWeave, while TeraWulf, Hut 8, Iren, and Cipher Mining have all announced AI-related capacity plans. The common thread: data center power capacity has become the scarce resource in the AI buildout, and companies that control it can command premium lease rates.
Hunt Properties has executed a non-binding letter of intent for a triple net lease with a compute provider serving what the company describes as "a global leader in AI computing hardware." If finalized, total lease payments could reach $1 billion over the contract's life, according to the press release. Neither party named the tenant.
The sector may face funding challenges ahead. Asset manager VanEck estimates a near-term funding gap of roughly $50 billion for planned AI data center projects, with long-term capital needs potentially reaching $221 billion if current plans proceed. Only about 25% of leased AI and high-performance computing capacity has been delivered so far, suggesting a significant execution risk across the industry.
Unlike the crypto miners making similar pivots, Empery has no existing data center operations, no track record of power infrastructure management, and a balance sheet still carrying thousands of Bitcoin acquired well above current market prices. The company said it would discontinue its Bitcoin treasury dashboard, as the reported net asset value based on crypto holdings alone "no longer fully reflects the total NAV of the Company."
Empery shares, which trade on the Nasdaq, have lost roughly half their value over the past 12 months as the Bitcoin treasury strategy unraveled. The pivot to AI infrastructure gives the company a new narrative, but the execution gap between announcing a data center deal and delivering operational capacity remains wide — a risk that investors in Core Scientific, TeraWulf, and other AI-converted miners know well.
This article is for informational purposes only and does not constitute investment advice.
