Empery Digital Pivots From Bitcoin Treasury to AI Infrastructure With $20M Data Center Deal
Empery Digital has secured an approximate 8% equity stake in Cardinal Data Power through a $20 million investment, channeling capital raised from digital asset sales into physical computing infrastructure as technology companies race to secure long-term energy supplies for artificial intelligence.
The investment forms part of Cardinal’s $70 million Series A funding round. The developer plans to use the capital to build out a vast data center complex in West Texas engineered specifically for artificial intelligence and high-performance computing loads. Initial capacity is slated to deliver 750 megawatts of power by 2027, with expansion targets reaching 1 gigawatt by 2029 and eventually scaling beyond 5 gigawatts.
To bypass grid congestion and speed up delivery times, Cardinal operates an integrated model that bundles local power generation, natural gas procurement, and electrical distribution hardware directly at the site level. As heavy computational workloads stretch power grids nationwide, direct access to energy sources has become a primary bottleneck for tech operators, driving increased capital into high-performance energy infrastructure.
The cash deployment marks a structural retreat from Empery’s previous business model. The firm originally operated in the electric powersports sector before shifting in mid-2025 to adopt a Bitcoin balance sheet strategy. However, over the past two months, Empery liquidated approximately 1,400 Bitcoin to generate roughly $87.1 million, using the proceeds to retire debt obligations and fund its pivot toward artificial intelligence hardware.
That strategic shift coincided with mounting activism from investor Tice P. Brown, who campaigned against the company’s digital asset accumulation strategy and demanded the departure of both the chief executive officer and board members. According to tracking data from BitcoinTreasuries.NET, Empery had accumulated as much as 4,081 Bitcoin before starting to scale down its position in March. Its reserves now stand at 1,514 Bitcoin.
Empery’s transition highlights broader fragmentation across corporate digital treasury models, where public companies are increasingly reassessing whether keeping unhedged cryptocurrency on balance sheets generates long-term shareholder value.
Some market participants have opted for complete liquidations. On July 20, shareholders of Satsuma Technology overwhelmingly passed resolutions with over 90% support to liquidate the firm’s Bitcoin holdings, return capital to equity holders, and delist the company from the London Stock Exchange.
Corporate consolidations in the sector have also faced headwinds. A three-way consolidation effort involving Tether-backed Twenty One Capital, payments network Strike, and mining operator Elektron Energy recently broke down. While Strike will continue operating as an independent firm, discussions remain ongoing between Twenty One and Elektron. Twenty One retains a reserve of 43,514 Bitcoin, making it the second-largest public corporate holder behind Strategy.
Other market entrants are testing hybrid corporate structures. Analyst Lyn Alden recently launched Orange Juice HODLINGS alongside Mexican billionaire Ricardo Salinas, securing $40 million in starting capital. Organized as a permanent-capital holding firm, the business intends to buy and operate profitable cash-flowing enterprises indefinitely while using Bitcoin strictly as a treasury reserve asset.
