Empery Digital Inc. reported a significant financial downturn for the fiscal year ending December 31, 2025, with a net loss of $150.1 million, compared to a loss of $45.5 million in the previous year. The company's revenue plummeted to $975,000, a stark decline from $3.98 million in 2024, primarily due to the discontinuation of certain product lines, including the Grunt EVO motorcycle. The cost of goods sold also decreased to $1.34 million from $18 million, reflecting the reduced scale of operations. The unrealized loss on digital assets, particularly Bitcoin, accounted for a substantial portion of operating expenses, totaling $122.7 million, which represented 79.3% of the company's total operating expenses for the year.
In terms of strategic developments, Empery Digital has shifted its focus towards a digital asset treasury strategy, which was launched in July 2025. This strategy aims to optimize the company's capital structure and increase shareholder value through the acquisition of Bitcoin and other digital assets. The company raised approximately $501 million through private placements, which included a payment of $28 million in Bitcoin. As of March 25, 2026, Empery Digital held 3,359 Bitcoin, with 2,891 BTC restricted as collateral for outstanding loans. The company has also initiated a share repurchase program, increasing its authorization to $200 million as of February 2026, and has repurchased over 23 million shares for $135.6 million.
Operationally, Empery Digital has faced challenges, including a reduction in its workforce to 15 employees as of December 31, 2025, and the termination of several product lines. The company has transitioned its focus to its E-Bike, the Brat, and plans to expand its offerings in European markets in the latter half of 2026. The company has also entered into agreements with Venom EV LLC for the supply of golf carts and has divested its four-wheel product lines to reduce future product liability exposure.
Looking ahead, Empery Digital's management anticipates that cash on hand, along with expected cash flows from operations and proceeds from derivative trading, will be sufficient to fund planned operations and repay borrowings. However, the company has acknowledged the risks associated with its digital asset strategy, including market volatility and regulatory uncertainties surrounding Bitcoin and other digital assets. The company’s ability to continue as a going concern is contingent upon achieving profitable operations and securing additional financing if necessary.
About Empery Digital, Inc.
Volcon, Inc. designs and sells all-electric off-road powersports vehicles, including E-Bikes, motorcycles, UTVs, and golf carts. The company focuses on outdoor recreation markets in the U.S. and internationally, leveraging third-party manufacturing and distribution agreements. Its value lies in innovative, environmentally friendly vehicles targeting enthusiasts and utility users, with a business model centered on product development, strategic partnerships, and global dealer networks.
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