Empery Digital’s BTC holdings crater 68% as proxy fight intensifies
A vice chancellor in the Delaware Court of Chancery has removed the protection of anonymity for a list of stockholders in BTC treasury company, Empery Digital, which has seen its stock price crash 72% over the past year.
The action accelerates an already expedited lawsuit by plaintiff ATG Capital, which resorted to legal action as Empery Digital’s stock and BTC prices cratered.
One year ago, its stock price was $10 and the company held 4,018 BTC at an average cost of $117,552 apiece. On Friday, its stock price was $2.84 and each of those BTC are now worth approximately $65,000.
As of August 6, it reported holdings of just 1,279 BTC, a decline of 68%, after the company sold several times on the way down and finalized tens of millions of dollars worth of losses.
Today, this so-called BTC treasury company is worth less than the BTC it holds.
Last week, a vice chancellor decided who gets to see the names of Empery Digital stockholders that activist fund ATG is using for leverage to replace board seats at the company.
It redacted a list of stockholder names it had assembled for its initiative, calling it a “protected business strategy.” Vice Chancellor Lori W. Will disagreed, saying, “The names of stockholders are not, in and of themselves, a business strategy.”
The order forces ATG to reveal its list to Empery’s counsel, although the names will remain obscured from public view for now. The vice chancellor allowed ATG to maintain the list’s designation as “highly confidential,” which confines its disclosure to parties within the litigation.
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Delaware judge unconvinced by ATG
ATG is upset for many reasons, including the company’s dismal stock price. The activist alleges Empery Digital’s board unfairly used bylaws to shut down a proxy voting contest.
Empery Digital counter-claims that ATG nomination paperwork to its board was genuinely defective.
Although the formal portions of the trial have concluded, there are still “final closing briefs before the court renders its verdict.”
The saga started a year ago, when electric off-road vehicle maker Volcon closed a private placement of more than $500 million on July 21, 2025, installing Empery Asset Management principal Ryan Lane as chairman and co-CEO.
It renamed itself Empery Digital less than two weeks later.
By August 11, it held 4,018.36 BTC at an average cost of $117,552 apiece.
The company only has 1,279 BTC remaining after selling the majority of its holdings for staggering losses. Worse, outstanding corporate loan agreements restrict 954 of those 1,279 BTC.
Defending its proxy fight with ATG has already cost the company $7,828,001 in fees through June 30.
ATG Capital Opportunities Fund LP is an outside activist fund, not a group of insiders. Gabriel Gliksberg founded ATG Capital Management in November 2020 and has proposed nine directors for Empery Digital.
His fund holds 4.5 million Empery Digital shares. That was 14.7% of the company in March, and a larger slice now that Empery’s own buybacks have decreased the size of the float.
Empery announced on March 27 that ATG’s slate of directors and a separate self-nomination from shareholder Tice P. Brown were both “invalid and misleading” under its corporate bylaws.
Absent a “valid court order,” the company claimed, “any votes or ballots cast for any of ATG Capital’s purported nominees will be void and of no force or effect.”
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