Empery CEO and board face resignation calls over $260M BTC treasury

Empery Digital is currently trading at monumental lows after losses on its Bitcoin treasury reached 46%. The stock was down as much as 10% over the five-day chart as its board-level conflict plays out in the public eye. 

Many institutional adopters of digital assets are currently recording unrealized losses due to Bitcoin’s decline to nearly half its all-time high. Bitcoin is currently trading at $63,165, significantly lower than the average cost of $117,607 at which Empery Digital purchased its tokens. 

Why is the Empery Digital board facing a revolt over its Bitcoin strategy?

Empery Digital Inc. (EMPD) is currently experiencing massive pushback from its shareholders after the company’s strategy to hold Bitcoin (BTC) on its balance sheet led to hundreds of millions of dollars in unrealized losses. 

Tice P. Brown, who owns nearly 10% of the company, sent a scathing letter to the board on February 23, 2026, arguing that the current management is only interested in protecting their own jobs. He claimed that the board is entrenched and is blocking shareholders from getting their money back. 

According to BitcoinTreasuries.net data, Empery Digital holds 4,081 BTC that was purchased at an average cost of $117,607 per Bitcoin. Bitcoin is currently trading around $63,165, and the “Fear & Greed Index” has dropped to a level of 8, which indicates “Extreme Fear.”

The company’s treasury is now worth approximately $258.40 million, representing a 46.17% loss on its investment. 

The stock market also reacted poorly to these losses, with Empery’s market capitalization falling to just $147 million. The entire company is now trading for much less than the value of the Bitcoin it holds. 

In his letter, Tice Brown pointed out that shareholders have been selling their stock at “enormous discounts.” He goes on to say that the only way to fix the issue is to fire the CEO, Ryan Lane, and sell the Bitcoin to give the cash back to investors.

Brown revealed that Empery’s management made a private bid to buy back 100% of his stock. They offered to pay him the full net asset value (NAV) of his shares, but upon accepting the offer, Brown would have to sign a standstill agreement preventing him from criticizing the company or trying to change the board. 

Brown claimed to decline the “offensive” offer. 

Brown raised concerns about the company’s $105 million margin loan, which is considered reckless. 

There are also allegations that Empery employees have been day-trading hundreds of millions of dollars in Bitcoin derivatives. Brown previously claimed he was “performatively dragged out” of a meeting at the company’s Rockefeller Center office by security.

Is the crypto treasury model losing ground?

Similar to the Empery crisis, YZi Labs and CEA industries have also been involved in a power struggle centered around their digital asset strategy. Cryptopolitan recently reported that YZi Labs has been trying to expand the board of directors at CEA Industries to gain more control over the company. 

CEA Industries, which provides technology for indoor farming, rebranded itself as the BNB Network Company (BNC) and began its efforts to hold Binance Coin (BNB) as its primary reserve.

In July 2025, YZi Labs helped raise $500 million for this treasury, and by August, the company had bought over 515,000 BNB worth nearly $465 million. However, things quickly fell apart in December 2025. 

Cryptopolitan reported that YZi Labs accused the company’s asset manager, 10X Capital, of allegedly wanting to buy other coins like Solana (SOL). When this disagreement became public, the stock price for BNC dropped roughly 87% from its highest point. 

Now, YZi Labs, led by Changpeng Zhao, is fighting to put its own people on the board. They have filed documents with the SEC to allow shareholders to vote on expanding the board. The SEC is still reviewing these filings, so the company’s shareholders are stuck and cannot vote yet.

Despite these recent headlines, leading Bitcoin reserve firm Strategy continues to buy more, adding about $40M in new BTC to its reserve yesterday.