Empery Digital Inc. (NASDAQ:EMPD) shares dropped over 12% in pre-market trading Monday, reaching US$7.90, following the company’s announcement of a US$25 million credit line aimed at funding share repurchases. Over the past year, the stock has plunged more than 90%.
Based in Round Rock, Texas, Empery emphasized that the company may draw on the credit line at its sole discretion. Management is also exploring an additional $75 million through an uncommitted credit facility, potentially raising total available funds to $100 million.
The company has also revised its share repurchase program, lowering the rate to 1%. Management said the adjustments are part of a strategy to reduce costs while increasing bitcoins per share, capitalizing on market opportunities.
Co-CEO Ryan Lane noted that the updated resources and policies allow the company to leverage part of its BTC portfolio for share buybacks, particularly when trading below net asset value (NAV), which should enhance the bitcoin per share metric, a key internal indicator.
Empery Digital, previously Volcon, adopted a Bitcoin-focused treasury policy last month. It currently holds 4,051.90 BTC, purchased for a total of roughly US$476 million, averaging US$117,554 per BTC. Since the August 12 update, the company has added 25.20 BTC for $3 million, alongside recent purchases of 87.62 BTC for $10 million and 17.51 BTC for $2 million.
Market data shows Empery Digital’s market capitalization at US$427 million. With a negative beta of -0.68, the stock exhibits an inverse trend to the broader market, offering potential diversification benefits for investors.
The company continues its electric vehicle operations under the Empery Mobility brand, carrying on Volcon’s legacy of sustainable off-road motorcycles and utility vehicles.
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