According to industry sources, corporate treasury management firm Empery Digital Inc. has officially divested its digital asset strategy, redirecting a $20 million investment into Cardinal Data Power in exchange for approximately an 8% equity stake. This move signals a complete strategic pivot toward artificial intelligence infrastructure.

The investment comes from Cardinal Data Power's $70 million Series A funding round and is earmarked for constructing a 750-megawatt data center campus in West Texas. The facility is designed to provide dedicated computing power for AI and high-performance computing tasks, integrating power generation, natural gas supply, and electrical infrastructure to accelerate large-scale construction.

According to the project timeline, the first phase of power delivery is expected by 2027, with an expansion target of 1 gigawatt by 2029 and long-term capacity projected to exceed 5 gigawatts. Data compiled from sources shows that Empery Digital Inc. financed this move through significant asset liquidation.

To raise capital for the investment and repay debts, the company sold 1,400 BTC over two months, cashing out nearly $87.1 million. This action was taken under strong pressure from shareholder Tice P. Brown, who demanded the company abandon its digital asset treasury management strategy and called for the resignation of the CEO and board members. The reduction has lowered the company's BTC holdings from a peak of 4,081 to 1,514, with the sell-off starting in March and completing the strategic adjustment after restructuring its legacy electric vehicle business by mid-2025.

The digital asset treasury management sector is currently experiencing structural divergence. On July 20, Satsuma Technology decided to sell all of its bitcoin assets and delist from the London Stock Exchange after over 90% of shareholders voted in favor of capital return. Meanwhile, a proposed merger between Twenty One Capital, Strike, and Elektron Energy fell through, leaving Strike independent and Twenty One Capital still holding 43,514 BTC.

In contrast, Cardinal Data Power's Texas project is expected to begin its first power distribution by 2027, with physical infrastructure emerging as a new exit route for some firms.