Empery Digital, Inc. reported significant financial changes in its latest 10-Q filing for the third quarter of 2025, revealing a net loss of $34.6 million for the three months ending September 30, 2025, compared to a loss of $13.6 million during the same period in 2024. Revenue for the quarter dropped to $198,301, a decline of approximately 81.6% from $1.1 million in the prior year. For the nine months ending September 30, 2025, total revenue was $1.6 million, down from $3.1 million in 2024. The company attributed the revenue decline to reduced sales of its electric vehicles and a strategic shift towards a digital asset treasury strategy.
The company's operational expenses surged to $34.4 million for the third quarter, up from $2.9 million in the same quarter last year. This increase was primarily driven by general and administrative expenses, which included $13.8 million in stock-based compensation related to new employee inducement options and bonuses for executives. The unrealized loss on digital assets also contributed significantly, amounting to $14.1 million for the quarter. As of September 30, 2025, Empery Digital held 4,081 Bitcoin, with a carrying value of $334.7 million, reflecting the company's pivot towards digital asset management.
In terms of strategic developments, Empery Digital underwent a significant transformation in July 2025, adopting a digital asset treasury strategy aimed at becoming a leading aggregator of Bitcoin. This included a private placement that raised approximately $501 million, with $28 million received in Bitcoin. The proceeds are being utilized to acquire additional Bitcoin and support the company's operational costs. Additionally, the company divested its Volcon brand to Venom EV, LLC, transferring all related intellectual property while retaining a 10% equity stake in Venom's reorganized entity.
Operationally, Empery Digital reported a decrease in customer engagement, with only 23 active dealers as it transitions its powersports business to focus on two-wheeled products and financing operations for golf carts. The company plans to launch new products in European markets and is currently homologating its E-Bike, the Brat, for sale in Japan. The company also anticipates a reduction in costs associated with its digital asset strategy, aiming to generate positive cash flow through inventory financing and derivative trading on Bitcoin.
Looking ahead, Empery Digital's management expressed confidence that its current cash reserves, combined with expected operational cash flow and available borrowing, will be sufficient to fund operations for at least the next year. However, the company remains cautious about the volatility of the Bitcoin market and the potential impact of regulatory changes on its digital asset strategy.
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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