Empery Digital has invested $20 million into Cardinal Data Power, securing an approximate 8% stake in the privately powered data center developer. The investment is part of Cardinal’s Series A funding round totaling $70 million. To fund the pivot, Empery disclosed this month that it sold roughly 1,400 Bitcoin over the past two months. The $87.1 million in proceeds was used to support AI infrastructure investments and pay down debt.
The sale has altered the company’s asset holdings. Empery now holds just 1,514 BTC, down from a peak of 4,081 BTC before it began trimming its position in March. The turnaround comes with reason: Tice P. Brown, a shareholder, pressured the company to abandon its Bitcoin treasury strategy and even called for the CEO and board of directors to step down.
AI Infrastructure Needs Power
Empery’s new focus centers on large-scale infrastructure projects. Cardinal Data Power is currently constructing a 750-megawatt data center campus in West Texas. Initial power is scheduled for 2027, followed by an expansion to 1 gigawatt by 2029, with a long-term target exceeding 5 gigawatts. Bernstein analysts noted that deals repurposing Bitcoin mining facilities for AI power are essential, addressing power capacity shortages that threaten AI growth.
Diverging Stances Among Institutions
Empery’s move away from crypto is mirrored by other players. Satsuma Technology became one of the first Bitcoin treasury companies to take a similar stance. On July 20, over 90% of Satsuma’s shareholder votes approved a plan to liquidate its Bitcoin holdings and delist from the London Stock Exchange.
Despite outflows, some entities continue to hold their ground. Twenty One Capital currently retains 43,514 BTC - making it the second-largest tracked corporate treasury holder behind Strategy. A new business model is also being explored by Lyn Alden, who co-founded Orange Juice HODLINGS. Backed by $40 million in initial capital, the entity aims to combine long-term business operations with Bitcoin as a reserve asset.
For the market, the maneuvers by Empery and Satsuma prove that the institutional adoption narrative faces real tests. When internal pressure demands strategic clarity and opportunities in emerging sectors grow, Bitcoin can quickly be moved off corporate balance sheets.
Sourced from Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
