How does EMPD's average purchase price of $117,552 per BTC compare to the current market price and the price paid in the earlier acquisition?

Valuation Gap: The company’s disclosed average cost of $117,552 per BTC is well above today’s spot price (which, as of early‑August 2025, is hovering in the low‑$30‑40 k range—roughly one‑third of the historical cost). That means Empery Digital is carrying a significant unrealised loss on its balance‑sheet BTC holdings, on the order of 70‑80 % of the acquisition price. The earlier acquisition of 17.51 BTC for a total of $2 million translates to an effective price of about $114,000 per BTC, only a few percent below the overall average cost. Both purchases were made at levels far above current market levels, so the company’s cost basis is anchored to a price regime that has not yet been revisited.

Trading Implications: From a fundamental perspective, the massive discount between the company’s cost basis and the market price creates a “cost‑basis cushion” that could enable the firm to hold the Bitcoin as a long‑term strategic reserve or to sell portions at a modest premium (e.g., a 10‑15 % upside) without eroding the balance sheet. Technically, BTC is still in a multi‑year downtrend with support near $30k‑$35k and resistance near $40k‑$45k; any break above $45k could provide a tactical exit point for a limited‑scale sell‑down. Actionable strategy: Consider a partial‑sale approach—e.g., sell a small portion (5‑10 % of the holdings) if BTC rallies above $45k to lock in modest gains while preserving the bulk of the position for a potential long‑run recovery. If the price remains stuck below $40k for the next 3‑6 months, a hold‑and‑wait stance is defensible, especially if the firm’s cash‑flow needs are met elsewhere and the BTC holdings are viewed as a non‑core, long‑term asset.