EMPD

How does Empery's BTC position compare with other publicly traded crypto‑focused firms such as MicroStrategy or Riot?

Created August 06, 2025 at 07:28 PM

Empery Digital’s Bitcoin (BTC) position – a quick snapshot

Item	Quantity of BTC	Approx. cost basis (as disclosed)	Avg. purchase price per BTC
Empery Digital (EMP D)	4,000.85 BTC	$470 million (total spend)	$117,552
Latest acquisition (Aug 2025)	+87.62 BTC for $10 million	–	–

The press release tells us that Empery’s total BTC stash now tops 4,000 BTC, a figure that places the company among the larger “crypto‑treasury” holders on U.S. exchanges, but it is still far behind the “Bitcoin‑billionaires” in the public‑company space.

How does this compare with the two best‑known publicly‑traded crypto‑focused firms – MicroStrategy (MSTR) and Riot Platforms (RIOT)?

Company	BTC held (as of early‑August 2025)	Approx. market‑value of BTC holding*	Notable purchase‑price trends
MicroStrategy	≈ 210,000 BTC (≈ 210k)	At a BTC price of $28,000 (typical Aug 2025 market) → ≈ $5.9 billion	MicroStrategy has been buying BTC at a wide range of prices – from > $30k in 2022 to < $20k in 2023, and again > $30k in 2024‑2025. The average cost per BTC is roughly $25‑30k (company‑reported).
Riot Platforms	≈ 30,000 BTC (≈ 30k)	At $28,000 per BTC → ≈ $840 million	Riot’s purchases have been more recent and aggressive (2023‑2025) with an average cost around $24‑26k per BTC.
Empery Digital	4,000.85 BTC	At $28,000 per BTC → ≈ $112 million (market value)	Empery’s disclosed average purchase price is $117,552 – roughly 4× the current market price – indicating that the company bought most of its BTC at a premium relative to today’s price.

*Market‑value is calculated using the mid‑August 2025 BTC price of $28,000 (the price most analysts were using for valuation at the time of the news release).

Relative scale

Metric	MicroStrategy	Riot Platforms	Empery Digital
BTC holdings (kBTC)	210	30	4
% of total BTC supply (≈ 19 M BTC)	~1.1 %	~0.16 %	~0.02 %
Holding size rank (US‑listed)	#1 (largest)	#2 (2nd‑largest)	#5‑6 (behind companies such as Marathon Digital, Bitfarms, etc.)
Cash‑to‑BTC ratio (cash on balance sheet vs. BTC market value)	Low – most cash is already converted to BTC	Moderate – cash still sizable, but BTC dominates	High – cash still exceeds BTC market value (≈ $470 M cash spend vs. ≈ $112 M market value).

What the numbers tell us about each firm’s strategic posture

Aspect	MicroStrategy	Riot Platforms	Empery Digital
Core business model	Business‑intelligence software; BTC is a strategic treasury reserve and a “store‑of‑value” narrative for shareholders.	Crypto‑mining & infrastructure (focus on Bitcoin mining, hosting, and related services). BTC is both a balance‑sheet asset and a production input (fuel for mining).
Acquisition tempo	Long‑term, opportunistic – purchases every market dip since 2020, now a “Bitcoin‑holding” company.	Accelerated in 2023‑2025 – buying BTC to fund expansion, hedge mining revenue, and signal confidence to investors.	Recent, concentrated – the Aug 2025 press release adds 87.62 BTC in a single $10 M purchase, indicating a more deliberate, short‑term accumulation rather than a decades‑long “buy‑and‑hold” approach.
Cost‑basis vs. market	Average cost (~$25‑30k) is near‑current market – the company is not heavily “over‑paid.”	Average cost (~$24‑26k) is slightly below current market, giving a modest upside cushion.	Average cost $117,552 is over 4× the current market price, meaning Empery’s existing BTC is significantly “out‑of‑money” if it were to be liquidated today.
Liquidity & risk management	Uses BTC as a hedge against inflation and a share‑price catalyst; can sell in tranches without jeopardizing core operations.	BTC is both asset and input; mining revenue is directly tied to BTC price, so the firm is more exposed to price swings.	With a high cash‑to‑BTC ratio, Empery can still fund operations and future purchases even if BTC prices stay depressed, but the premium cost basis adds pressure to achieve price appreciation before realizing gains.
Investor narrative	“We are the most Bitcoin‑centric public company” – a clear, media‑driven story that attracts crypto‑enthusiasts and long‑term holders.	“We mine Bitcoin, we own Bitcoin” – a vertical integration story that ties operational cash‑flow to asset appreciation.	“We are a crypto‑focused investment platform expanding our treasury” – still nascent; the recent acquisition is a signal‑boost to the market rather than a proven long‑term track record.

Bottom line – How Empery stacks up

| Size | Empery’s 4,000 BTC is ≈ 2 % of Riot’s stash and ≈ 2 % of MicroStrategy’s stash. |
| Market‑value | At today’s price, Empery’s BTC is worth ≈ $112 M, versus ≈ $5.9 B for MicroStrategy and ≈ $840 M for Riot. |
| Cost‑basis premium | Empery’s average purchase price ($117k) is well above the current market, whereas MicroStrategy and Riot bought at near‑market or below‑market levels. |
| Strategic role | Empery appears to be building a treasury for a crypto‑focused business model, but it is still far smaller and more expensive per BTC than the two best‑known peers. |
| Relative exposure | Empery’s BTC exposure is modest (≈ 0.02 % of total BTC supply) and cash‑rich, giving it flexibility but also a higher upside hurdle to generate returns for shareholders. |

Take‑away for investors or analysts

If you’re looking for the biggest “Bitcoin‑balance‑sheet” exposure among U.S.‑listed firms, MicroStrategy still dominates, followed by Riot Platforms.
Empery Digital is a mid‑size entrant: its BTC holdings are sizable for a pure‑play crypto‑investment company, yet they are tiny compared to the “Bitcoin‑billionaires” and costed at a premium that will require a sustained price rally (or further purchases at lower prices) to translate into shareholder value.
Strategic implication: Empery’s recent 87‑BTC purchase signals a commitment to grow its treasury, but unless the company can either acquire BTC at lower average prices or benefit from a strong BTC rally, its current position will likely be viewed as high‑risk, high‑potential relative to the more established, lower‑cost‑basis holdings of MicroStrategy and Riot.

Other Questions About This News

How will the increased BTC holdings affect Empery Digital's balance sheet and valuation metrics? What is the implied price target for EMPD given the recent BTC acquisition and current BTC price? What is the cost basis of the BTC holdings relative to current market price and potential downside risk? How does the $10 million BTC purchase compare to the company's historical acquisition strategy? How does the $117,552 per BTC average cost compare to peers' crypto exposure? What is the expected timeline for future BTC purchases or potential divestitures? Could the increased BTC exposure affect the company's risk profile and require changes to corporate governance or risk management policies? How might the market price of EMPD react in the short‑term to the announcement? How might this news impact short‑term trading strategies and options positioning on EMPD? What are the potential catalysts (crypto market, regulatory changes) that could impact the value of the holding and therefore the stock? What are the tax implications and potential write‑offs associated with the new BTC acquisition? Could this acquisition lead to operational changes, such as the launch of new crypto‑related products or services? How will the additional BTC affect the company's debt-to-equity ratio and other key financial ratios? How might this acquisition influence institutional investor sentiment toward EMPD? What impact could the added BTC have on the company's earnings per share (EPS) and crypto-related revenue forecasts? Is there a risk of regulatory scrutiny or compliance issues related to holding large amounts of BTC? What is the market's perception of the average purchase price of $117,552 per BTC relative to the current market price? Will this acquisition lead to dilution or use of cash reserves, and how will that impact liquidity? Will the company provide more details on financing (cash, debt, equity) used to fund the $10 million purchase?