Empery Digital Faces Shareholder Revolt in the United States After Activist Investor Demands Sale of Massive Bitcoin Treasury Holdings

For a while, loading up on Bitcoin felt bold. Visionary, even.

Public companies that added the digital asset to their treasuries were hailed as forward-thinking pioneers ready to outsmart inflation and traditional finance.

But after months of sliding crypto prices, that glow has dimmed.

Now, activist investors are circling.

They’re questioning whether betting corporate cash on Bitcoin was a masterstroke — or an expensive gamble that shareholders never truly signed up for.

Empery Digital’s Bitcoin Bet Faces a Revolt

Take Empery Digital, for example.

A shareholder who controls nearly 10% of the company has publicly demanded sweeping changes.

In a sharply worded letter, investor Tice P. Brown called for the sale of Empery’s roughly 4,000 Bitcoin holdings and urged leadership — including the CEO and board — to step aside.

His argument? The company’s Bitcoin-heavy strategy hasn’t maximized shareholder value and is exposing investors to unnecessary volatility.

Empery disagrees. The company has defended its pivot into becoming a Bitcoin treasury vehicle, noting it holds 4,081 BTC — enough to rank it among the top 25 publicly traded Bitcoin holders.

Its leadership maintains that long-term conviction matters more than short-term price swings.

But the clash reflects something bigger: tension between crypto-native optimism and Wall Street’s demand for predictable returns.

The Corporate Bitcoin Model Under Fire

This isn’t just about one company.

Several public firms embraced Bitcoin as a core balance-sheet strategy in recent years, arguing that digital scarcity and long-term appreciation would reward patient investors.

The problem? Bitcoin’s volatility doesn’t align neatly with quarterly earnings cycles.

When crypto rallies, companies holding large reserves look brilliant.

When markets cool — or enter what traders call a “crypto winter” — those same bets can drag down stock prices and amplify investor anxiety.

Activist shareholders are now echoing a broader question: Should public companies function like crypto hedge funds?

Stablecoins Quietly Steal the Spotlight

While Bitcoin treasuries face pushback, stablecoins are telling a very different story.

Circle, the issuer behind USDC, delivered stronger-than-expected fourth-quarter earnings even as broader crypto markets softened.

Revenue hit $770 million in Q4, up 77% year-over-year.

Net income reached $133.4 million, beating analyst expectations.

Perhaps more importantly, USDC supply grew 72% to $75.3 billion by year-end — a sign that demand for dollar-backed digital liquidity remains strong.

For the full year, Circle reported $2.7 billion in revenue.

It posted a net loss of $70 million, largely tied to stock-based compensation after its IPO, but investors appeared unfazed.

Shares surged more than 20% following the earnings release.

In contrast to Bitcoin treasury strategies, stablecoins offer something corporate America understands well: yield on reserves and transaction volume growth tied to real-world demand.

PayPal’s Crypto Push Hasn’t Fixed Its Stock Slide

Then there’s PayPal, which entered the digital asset arena with fanfare — including the launch of its PayPal USD stablecoin.

Yet despite that expansion, PayPal’s stock remains down roughly 37% over the past year.

Now, takeover rumors are swirling.

According to reports, some companies are evaluating whether to pursue a full acquisition, while others may target specific segments of the payments giant’s business.

Stripe has reportedly emerged as one interested party.

It’s an ironic twist. PayPal once led the digital payments revolution.

Today, it’s navigating restructuring efforts while trying to prove its crypto strategy can generate sustainable growth.

Stablecoins Enter the Housing Market

If you want a glimpse of crypto’s next frontier, look at real-world asset tokenization.

Mortgage lender Better and venture firm Framework Ventures are launching a $500 million initiative to channel stablecoin liquidity into U.S. mortgage lending.

Under the structure, Better continues underwriting home loans, while funding flows from stablecoin ecosystems.

The move connects decentralized finance with traditional housing markets — a long-discussed bridge that’s finally being built at scale.

Even as crypto prices wobble, infrastructure linking blockchain to real-world finance keeps expanding.

Impact and Consequences

The developments this week reveal clear fault lines across the crypto industry:

• Corporate Bitcoin strategies face credibility tests as activist investors demand accountability.

• Stablecoins are emerging as crypto’s most resilient segment, driven by demand for dollar-denominated liquidity.

• Legacy payment firms face identity challenges, balancing innovation with shareholder pressure.

• Real-world asset tokenization gains traction, potentially reshaping industries like mortgage lending.

If Bitcoin treasuries falter, companies may rethink holding volatile digital assets as core reserves.

But stablecoin models — especially those generating revenue through interest and transaction activity — appear structurally stronger in the current environment.

What’s Next?

Several trends will shape the months ahead:

• Activist campaigns could intensify if Bitcoin prices remain subdued.

• More public companies may reconsider or reduce crypto treasury exposure.

• Stablecoin regulation in the U.S. could accelerate as adoption grows.

• Payments giants may face consolidation if takeover talks evolve into formal offers.

• Tokenized real-world assets could expand beyond mortgages into bonds, trade finance, and private credit.

Crypto isn’t disappearing — it’s reorganizing.

Summary

After a prolonged dip in digital asset prices, public companies that built Bitcoin-heavy treasuries are under increasing pressure from shareholders.

Empery Digital’s dispute highlights growing skepticism around volatile balance-sheet strategies.

Meanwhile, Circle’s strong earnings demonstrate stablecoins’ staying power, and PayPal’s struggles show that not every crypto expansion translates into stock gains.

At the same time, stablecoin-backed mortgage initiatives signal continued innovation beneath the surface.

The industry’s next chapter may favor steady infrastructure over speculative accumulation.

Bulleted Takeaways

• Empery Digital faces shareholder pressure to sell its 4,000+ Bitcoin holdings.

• Activist investors are challenging the long-term viability of corporate Bitcoin treasuries.

• Circle reported strong Q4 earnings, with USDC supply climbing to $75.3 billion.

• PayPal’s crypto push has not reversed its stock decline, and takeover interest is emerging.

• A $500 million stablecoin-backed mortgage initiative bridges DeFi and traditional housing finance.

• Stablecoins appear more resilient than speculative treasury strategies in the current market cycle.