Empery Digital Inc's Business Segments

Empery Digital Inc., originally incorporated as Frog ePowersports, Inc. in 2020 and subsequently renamed twice, focuses on a digital asset treasury strategy centered on acquiring and managing Bitcoin (BTC) holdings to optimize its capital structure and increase BTC per share. The company has raised approximately $501 million through private placements, including $28 million in Bitcoin, and established an At-The-Market (ATM) program to sell up to $1.1 billion of common stock. It operates a share repurchase program funded by borrowings and BTC sales. Empery Digital generates income through trading BTC derivatives and utilizes institutional-grade custodians for Bitcoin security. As of March 25, 2026, the company held 3,359 BTC, with 2,891 BTC restricted as loan collateral. Previously, Empery Digital operated in the electric vehicle sector, producing off-road electric powersports vehicles such as electric motorcycles and e-bikes, but has since sold certain product lines. The company entered into a supply agreement with Venom-EV LLC to supply golf carts, with multiple amendments increasing purchase amounts and adjusting payment terms. Additionally, Empery Digital divested the Volcon brand to Venom in exchange for a 10% equity stake in Venom's reorganized corporation.

The Company operates as a single operating segment following the implementation of its digital asset treasury strategy. The Company's Co-CEOs serve as the chief operating decision makers (CODMs). The "Corporate & Other" category is not considered an operating segment and primarily includes costs and expenses related to executing the Company's Bitcoin strategy, such as unrealized gains or losses on digital assets, third-party costs associated with Bitcoin holdings, and net interest expense related to debt obligations mainly used for repurchasing common stock. Beginning in July 2025, certain corporate resources and related share-based compensation expenses dedicated to the Bitcoin strategy are included within the "Corporate resources" and "Share-based compensation expense" segment expense line items. Prior to July 2025, the Company operated as one operating segment with the CEO as the CODM, who used consolidated financial statements to assess performance.