Empery Digital Announce Reports Q3 2025 Results and Strategic Progress on Bitcoin Treasury and E-Bike Focus
Empery Digital Inc. Announce a dual-focused company operating in both the electric bike (E-bike) and Bitcoin Treasury sectors, has released its operational and financial highlights for the third quarter ended September 30, 2025. The report underscores the company’s transition toward a streamlined business model centered on its Bitcoin (BTC) treasury strategy and a renewed focus on two-wheel mobility products. Additionally, Empery Digital shared updates on its share repurchase program, cost reductions, and divestiture of non-core assets.
Strategic Shift: Strengthening the Bitcoin Treasury
During the third quarter, Empery Digital took decisive steps to implement its Bitcoin Treasury strategy following a private placement that generated over $500 million in gross proceeds. The company’s overarching goal is to maximize BTC per share, a metric designed to enhance shareholder value through disciplined capital allocation.
Under this strategy, the company plans to issue equity or equity-linked securities when market conditions are favorable—specifically, when the company can raise capital at a premium to its net asset value (NAV). Conversely, Empery Digital intends to repurchase shares when market prices fall below NAV, ensuring that every move contributes to an increase in NAV per share beyond Bitcoin’s own growth rate.
To execute this strategy, Empery Digital expanded its capital management tools:
- Increased its at-the-market (ATM) program to allow up to $1.1 billion in common stock sales.
- Filed a universal shelf registration statement to issue additional equity or equity-linked securities.
- Boosted its share repurchase authorization to $150 million.
- Secured borrowing agreements totaling $150 million in committed capital.
These measures create flexibility for the company to adapt its balance sheet to changing market conditions while reinforcing Bitcoin holdings as a core treasury asset.
Share Repurchase Program: Driving NAV and Shareholder Value
Since the implementation of the BTC strategy, Empery Digital has aggressively pursued share repurchases. As of the reporting date, the company had repurchased 11,082,934 shares under its $150 million program, at an average price of $7.36 per share, inclusive of fees and commissions.
Following these buybacks, approximately $68.5 million remains authorized for future repurchases. After factoring in the exercise of pre-funded warrants to purchase 3.9 million shares, the total shares outstanding now stand at 40,337,401.
The repurchases were funded through the company’s borrowing facilities, from which $80 million has been drawn. Management reiterated its commitment to using share repurchases as a tool to increase BTC per share and deliver long-term shareholder returns.
In addition to capital management, Empery Digital continues to generate income through Bitcoin derivative trading, focusing on short-term put and call contracts. The company reported net income of $955,087 from these derivative positions that have been settled to date.
Leadership Perspective: Building Value through Bitcoin and Efficiency
Co-CEO Ryan Lane emphasized that the company’s BTC treasury strategy has already delivered measurable results.
We have implemented the Bitcoin treasury strategy and successfully increased our NAV per share at a rate that exceeds the return of Bitcoin,” Lane stated. “While both BTC and our stock have been volatile, we remain confident in Bitcoin’s role as the dominant digital currency. It continues to outperform traditional markets, and our strategy is aligned to capture that upside.
Lane also highlighted ongoing efforts to reduce operating costs and improve cash efficiency. The company aims to ensure that cash generated from operations, derivative income, and financing activities can cover expenses and still produce excess cash flow to reinvest in Bitcoin.
Divestment and Refocus on Core E-Bike Operations
In a key operational move, Empery Digital divested the Volcon brand and related intellectual property tied to its four-wheel vehicle line. The company is now fully focused on two-wheel products, positioning itself for growth in urban mobility and last-mile transport markets.
On October 15, 2025, Empery Digital entered into an Asset Purchase Agreement with Venom EV, LLC, transferring certain intellectual property assets of its powersports division. In return, Empery Digital received a 10% ownership stake in Venom, on a fully diluted and non-dilutable basis.
This transaction allows the company to retain exposure to the powersports sector through equity participation, without the operational overhead associated with direct manufacturing and distribution.
Expanding Financing Opportunities in the EV Market
Empery Digital also plans to leverage its capital and relationships to expand into EV and golf cart inventory financing. The company sees potential to generate stable income by financing inventory purchases for OEMs, particularly in the golf cart sector.
Co-CEO John Kim elaborated:
We have evolved our EV business by divesting our four-wheel products and focusing on inventory financing for golf cart OEMs like Venom. Given the ongoing shortage of golf carts due to tariffs on Chinese-made units, there’s a strong opportunity for manufacturers to gain market share if they can secure financing for inventory sourced from other regions.
This pivot aims to blend Empery Digital’s financial expertise with its electric mobility background, unlocking new revenue streams through interest income and asset-backed financing.
Operational Streamlining and Cost Reduction
Over the past quarter, Empery Digital made significant progress in reducing its operating expenses. The company:
- Reduced headcount by six employees, leaving 15 full-time staff as of November 10, 2025.
- Lowered insurance costs (including product, property, and general liability) by over $400,000 annually.
- Began working to sublease underutilized facilities, which are leased through August 2026, with no plans to renew upon expiration.
These measures reflect management’s determination to create a lean, efficient organization aligned with the company’s strategic focus.
Future Product Development: Brat E-Bike and Cargo Mobility
Despite divesting its four-wheel line, Empery Digital continues to innovate in two-wheel electric mobility. The company has retained IP for the Brat E-Bike and is developing a prototype dual-sport motorcycle, which is under evaluation for future production.
The Brat E-Bike is set to enter a new market phase soon. Empery’s Japanese distributor is finalizing the homologation process, with sales expected to begin in Q1 2026. This milestone marks a major step in the company’s international expansion.
Additionally, Empery Digital is exploring the launch of a modular cargo bike for the European market, where many cities have restricted or eliminated vehicle access in dense urban zones. These cargo bikes—designed for both electric and manual operation—could serve businesses offering last-mile delivery and families seeking sustainable urban transport options.
John Kim emphasized the market potential:
There’s growing demand for quality-built, competitively priced cargo bikes for delivery companies and families alike. We’re developing a prototype with our manufacturing partner, and if testing and costs meet expectations, we could launch as early as the first half of 2026.
Source Link:https://www.businesswire.com/
