Empery Digital (NASDAQ: EMPD), the former electric vehicle maker turned Bitcoin treasury firm, is betting $65 million on AI infrastructure after months of shareholder revolt and forced BTC liquidations gutted its original crypto strategy.

It was seen in an SEC filing and confirmed in a press release by the Austin-based company that 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 around 150 megawatts (MW) of existing power capacity, with a recent load study showing it could scale to around 300 MW.

How did Empery move from Bitcoin losses to AI ambitions?

Empery rebranded from Volcon Inc. in mid-2025 and built a Bitcoin treasury that peaked above 4,000 BTC, which was purchased at an average cost north of $117,000 per coin. When Bitcoin fell below $70,000 earlier this year, the unrealized losses were more than 40%.

Shareholder Tice P. Brown, who held around 10% of the company, called for CEO Ryan Lane’s resignation and called for a full liquidation of the Bitcoin position. 

The company went on to sell hundreds of BTC across multiple transactions to fund share buybacks and repay a $105 million margin loan.

By April, Empery had sold 370 BTC at around $66,632 each to retire its term loan and released about 1,800 coins previously locked as collateral. It currently has 2,914 BTC in its treasury, according to BitcoinTreasuries.net.

Alongside the AI data center deal announcement, Empery stated that 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.” 

What is the Empery AI infrastructure deal structure?

Empery’s $65 million buys a 25% interest in a newly formed entity that will own the converted data center. Hunt Properties, a Dallas-based real estate firm with more than $2.5 billion in completed projects since 1987, serves as the managing member through its subsidiary TexStack Infrastructure, holding the remaining 75%.

The SEC filing shows 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.

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. However, neither party named the tenant.

“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,” Lane said in the announcement.

Empery joins a crowded AI infrastructure race

Empery is joining an increasing list of Bitcoin miners who are pivoting into AI by repurposing their power assets. 

A major reason behind this pivot is dwindling revenue from mining, with some miners seeing little to no profit from those operations. 

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 sector may face funding challenges in the near future as asset manager VanEck estimates a near-term funding gap of roughly $50 billion in a recent report. VanEck added that long-term capital needs could reach $221 billion if current plans proceed. Only about 25% of leased AI and high-performance computing capacity has been delivered so far.

However, unlike the miners, 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.

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