Empery's Bitcoin-Backed Buyback Strategy Aims to Narrow Share Price-NAV Gap

Empery Digital Inc. (NASDAQ: EMPD) has executed a $25.9 million share repurchase of 3.52 million shares under its $100 million buyback program, aiming to increase Bitcoin per share for shareholders. The buyback, completed via an open-market transaction, aligns with the company’s Bitcoin treasury strategy, which seeks to enhance shareholder value by reducing the number of outstanding shares while expanding its Bitcoin holdings. As of September 18, 2025, approximately $74 million remains available for future repurchases under the program .

The repurchase program is funded in part by a $50 million Master Repurchase Agreement (MRA) with NYDIG Funding LLC, collateralized by Bitcoin. The facility, bearing an 8.5% annual interest rate and maturing on August 31, 2026, refinances Empery’s prior $35 million borrowing facility and provides additional capital for share buybacks. This move follows the company’s strategic shift to a Bitcoin treasury model, adopted on July 17, 2025, to position itself as a capital-efficient Bitcoin aggregator .

Empery Digital has simultaneously expanded its Bitcoin reserves, acquiring an additional 12.97 BTC for $1.5 million since August 18, 2025. As of September 18, the company holds 4,064.88 BTC, acquired for an aggregate cost of $478 million, reflecting an average purchase price of $117,549 per BTC. The firm’s Bitcoin holdings now represent a core component of its balance sheet, with management emphasizing the use of asset-backed borrowing to optimize capital allocation .

The buyback program and Bitcoin acquisitions are part of a broader capital deployment strategy to boost intrinsic value per share. Empery’s management has indicated a willingness to leverage its Bitcoin collateral to secure additional financing for repurchases, particularly when share prices trade below net asset value (NAV). The company’s current share price of $7.35 (average purchase price in the latest repurchase) is below its NAV, which incorporates the value of Bitcoin holdings and operational assets .

Analysts note that the strategy could amplify Bitcoin exposure for shareholders while reducing dilution. By pairing share buybacks with Bitcoin accumulation, Empery aims to create a compounding effect: reducing shares outstanding increases Bitcoin per share, while Bitcoin’s price appreciation enhances overall equity value. This approach mirrors corporate Bitcoin treasury models adopted by firms like MicroStrategy and Block, though Empery’s focus on leveraged buybacks introduces unique risk-reward dynamics .

The company’s dual focus on Bitcoin aggregation and shareholder returns underscores its pivot from its previous all-electric powersports business, now rebranded as Empery Mobility. While the electric vehicle segment remains operational, the strategic emphasis on Bitcoin reflects a calculated bet on the asset’s long-term value proposition. Empery’s use of Bitcoin-backed financing to fund repurchases also highlights the growing intersection between traditional capital markets and digital assets .