Empery Digital, Inc. reported significant financial challenges in its latest 10-Q filing for the second quarter of 2026, revealing a net loss of $43.0 million for the three months ending June 30, 2026, compared to a loss of $3.9 million in the same period last year. For the first half of 2026, the company recorded a net loss of $128.4 million, a stark increase from $6.4 million in the prior year. Revenue for the second quarter fell to $80,019, a decrease of 58% from $190,173 in the same quarter of 2025, while total revenue for the first half of 2026 was $305,721, down from $652,505 in the previous year.
The company's financial performance was heavily impacted by a loss on digital assets amounting to $106.3 million for the first half of 2026, which accounted for 87% of total operating expenses. This loss was attributed to the volatility in Bitcoin prices, as Empery Digital has adopted a digital asset treasury strategy focused on acquiring and holding Bitcoin. The company reported a significant reduction in cash and cash equivalents, which stood at $3.6 million as of June 30, 2026, down from $9.1 million at the end of 2025. The company also faced a working capital deficit of $5.6 million.
Strategically, Empery Digital has undergone significant changes, including the divestiture of its four-wheel product lines to Venom EV, LLC, in exchange for a 10% equity stake in Venom. This move is part of a broader strategy to focus on its two-wheeled electric vehicle offerings and expand its financing operations for inventory purchases. The company has also formed a partnership with TexStack Infrastructure, LLC, to develop data center infrastructure, with an initial investment of $2.9 million in EMHU LLC, a joint venture aimed at acquiring properties for AI data centers.
Operationally, the company has seen a decline in customer engagement, with revenue from its E-bike, the Brat, significantly lower than previous product lines. The company reported financing income of $30,796 and sales of Brats totaling $14,397 for the second quarter of 2026. The total number of shares outstanding decreased to 28.1 million as of June 30, 2026, down from 33.8 million at the end of 2025, reflecting the impact of share repurchase programs that have utilized proceeds from Bitcoin sales and borrowings.
Looking ahead, Empery Digital anticipates continued challenges in generating revenue, particularly as it transitions away from four-wheeled products and focuses on developing new E-bike models. The company expects to face increased legal and professional fees related to ongoing shareholder litigation, which may further strain its financial resources. Management remains optimistic that cash on hand, along with potential proceeds from Bitcoin sales and available borrowings, will be sufficient to fund operations in the near term.
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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