Buyouts and bitcoin: Inside the messy proxy fight at BTC treasury company Empery Digital (EMPD)
A boardroom battle is unfolding at Empery Digital, a bitcoin treasury company, as an investor pushes for the sale of its BTC holdings and return of cash to shareholders.Summary
Empery Digital (EMPD), a bitcoin treasury company holding 3,723 BTC, is facing a proxy fight initiated by investor Tice P. Brown of Woodmont Partners, who owns 10.3% of the firm. Brown accuses management of poor governance and reckless behavior, specifically citing the use of bitcoin derivatives trading by employees. He is demanding the resignation of co-CEO Ryan Lane, the sale of all bitcoin holdings, and a return of cash to shareholders. Empery’s management rejects these claims, defending its strategy of using its bitcoin holdings for options trading to generate income. The dispute has escalated to include buyout talks and personal accusations, with Brown alleging he was removed from a meeting by security. The core issue revolves around whether Empery should liquidate its bitcoin holdings, which have declined in value, or continue its current strategy. A sale would result in a significant realized loss, but Brown argues it would close the gap between the share price and net asset value. The outcome of this fight could set a precedent for other small public companies with large bitcoin treasuries.
(Source：CoinDesk)