A major shareholder of Empery Digital is calling for the company to abandon its Bitcoin strategy, sell its digital assets, and return the proceeds to investors. The shareholder also demanded the resignation of the CEO and board of directors, accusing management of self-preservation over shareholder interests.

Empery Digital’s leadership offered to repurchase the shareholder’s shares at a premium to market net asset value, which was declined. The shareholder criticized the company’s capital allocation decisions and urged a pivot away from its Bitcoin strategy. The company refuted the shareholder’s claims, calling them misleading and self-serving.

The shareholder’s revolt against Empery Digital’s Bitcoin-centric strategy could disrupt the company’s business model and reshape investor expectations. Empery Digital accumulated 4,081 BTC to become one of the top 25 publicly traded Bitcoin holders globally after pivoting from an electric power sporting goods company.

Digital asset treasuries, like Empery Digital’s, have faced pressure as crypto prices retraced and equity valuations compressed. Analysts warn that the sustainability of crypto treasury companies depends on maintaining a premium valuation relative to their Bitcoin holdings. This has become challenging in the current market conditions, impacting companies like Empery Digital.

Read more at Cointelegraph: Empery Digital Shareholder Urges BTC Sale, CEO Exit