Crypto and stock prices both falling can't be tolerated! Empery's major shareholder is forcing a palace coup, demanding the CEO resign and sell 4,081 Bitcoins.

Bitcoin and digital asset treasury companies (DAT) see their stock prices plummet, prompting Empery Digital’s major shareholder Tice P. Brown to send a letter to the board of directors, urging the management team to abandon the company’s Bitcoin-centric strategy.

Tice P. Brown owns approximately 9.8% of Empery Digital’s shares and explicitly demands the company sell its 4,081 Bitcoin reserves (worth about $260 million), return all proceeds to investors, and for CEO Ryan Lane and the entire board to resign immediately.

Both sides present conflicting statements, and a proposed share buyback has sparked controversy

In his letter, Brown accuses Empery Digital’s executives of privately contacting him on February 18, proposing to buy back all shares at a premium equal to 100% of the net asset value. He rejected the proposal, claiming it was an attempt to preserve management positions and lacked genuine intention to return capital to shareholders.

This is Brown’s second call for change; he previously criticized Empery Digital’s capital allocation and stock buyback strategies, strongly urging the company to fully shift away from its Bitcoin strategy.

Image source: Empery Digital Shareholder Official Statement — Empery Digital’s major shareholder pushes for resignation and sale of Bitcoin, CEO and board resignations demanded

In response to the allegations, Empery Digital issued a statement claiming that Brown continues to distort facts to advance his self-interests, and countered that it was Brown himself who initially suggested a buyback at a significant premium, and that management believed reaching an agreement would best serve the company and all shareholders, prompting negotiations.

Bear market arrives, Empery Digital faces challenges

For Bitcoin DAT companies like Empery Digital, their core strategy relies on continuously accumulating and holding Bitcoin. Facing pressure to liquidate assets could overturn this approach and reshape investor expectations of the company’s value.

Formerly known as Volcon, Empery Digital was originally a power sports equipment company manufacturing electric off-road vehicles and related products. In mid-2025, it transitioned to a reserve strategy, accumulating 4,081 Bitcoin since then, ranking among the top 25 global publicly traded Bitcoin holders.

The crypto bull run cools, market downturn exposes structural weaknesses

As cryptocurrency prices decline and stock valuations compress, DAT companies face mounting pressure.

MoreMarkets co-founder and CEO Altan Tutar pointed out that in 2025, many digital asset treasury companies emerged, initially aimed at providing Wall Street investors with an alternative way to hold crypto assets. As the market turns bearish, the weaknesses of these companies that rely on rising coin prices are becoming apparent.

He bluntly states that market overcrowding makes淘汰 inevitable, and predicts that DAT companies focused on altcoins will be the first to fall, as maintaining valuations above their assets becomes difficult.

Ryan Chow, co-founder of Solv Protocol, also noted that the key for DAT companies to survive downturns is whether they can treat crypto assets as manageable digital capital.

Those that performed well in 2025 mostly generated stable income through on-chain financial instruments or used assets as collateral to obtain liquidity. Conversely, companies that merely hoard coins as marketing stories tend to bleed quickly under financial pressure.

Image source: EFGH, Gemini Digital Asset Treasury Company

ETF advantages highlight the need for DAT transformation

First Digital CEO Vincent Chok pointed out that as more compliant investors choose ETFs as a way to gain exposure to cryptocurrencies, and with regulatory environments relaxing, some ETFs are starting to include staking yields, further diminishing the appeal of DAT models.

Therefore, if these DAT companies do not adjust their models, they will struggle to compete directly with ETFs. Future surviving DAT companies must improve transparency, auditing, and compliance to align with traditional finance, and connect with professional financial infrastructure, enabling investors to clearly understand asset allocation, risk management, and yield sources.

Further reading:
Crypto reserve companies face risks? Foreign media reveal insider trading concerns, institutions warn of potential 1920s-style financial collapse