Empery Implements Bitcoin-Based Share Repurchase Plan to Reduce Disparity Between Share Price and NAV
Empery Digital Inc. (NASDAQ: EMPD) has repurchased 3.52 million shares for $25.9 million as part of its $100 million buyback initiative, with the goal of raising
Funding for the program partially comes from a $50 million Master Repurchase Agreement (MRA) with NYDIG Funding LLC, backed by Bitcoin as collateral. This facility, which has an annual interest rate of 8.5% and matures on August 31, 2026, refinances Empery’s earlier $35 million credit line and offers more capital for repurchasing shares. The move follows a July 17, 2025, shift to a Bitcoin-focused treasury approach, positioning the company as a Bitcoin aggregator with a focus on capital efficiency.
Empery Digital has also grown its Bitcoin reserves, acquiring another 12.97 BTC for $1.5 million since August 18, 2025. By September 18, the company’s total Bitcoin holdings reached 4,064.88 BTC, obtained at a combined cost of $478 million, or about $117,549 per BTC on average. Bitcoin now forms a significant part of the company's balance sheet, and management has highlighted the use of asset-backed borrowing to maximize how capital is deployed.
The share repurchase and Bitcoin purchases are part of a comprehensive capital allocation strategy to increase the intrinsic value per share. Empery’s leaders have expressed readiness to use Bitcoin as collateral to obtain further funding for buybacks, particularly when the stock trades below its net asset value (NAV). The latest average repurchase price of $7.35 per share is beneath the NAV, which takes into account both Bitcoin holdings and operating assets.
Experts remark that this approach may increase shareholders’ exposure to Bitcoin while minimizing dilution. By coupling buybacks with Bitcoin acquisition, Empery hopes to generate a compounding benefit: fewer shares mean more Bitcoin per share, and as Bitcoin’s price rises, equity value is further enhanced. This method resembles the corporate Bitcoin treasury tactics of MicroStrategy and Block, but Empery’s emphasis on leveraged buybacks adds a distinct risk-return profile.
The company’s dual priorities—growing Bitcoin assets and delivering value to shareholders—highlight its transition from an all-electric powersports manufacturer, now operating as Empery Mobility. While its electric vehicle business continues, the strategic focus on Bitcoin reflects a deliberate confidence in the asset’s future prospects. Empery’s use of Bitcoin-backed debt to finance buybacks also underscores the increasing overlap between conventional capital markets and digital currencies.
