A significant shareholder is urging Empery Digital to change its course by liquidating its Bitcoin assets and distributing the proceeds to investors. Tice P. Brown, who holds about 9.8% of the company’s shares, expressed discontent in a letter to the board, demanding the resignation of CEO Ryan Lane along with the entire board of directors.
In February, Brown declined an offer to repurchase his shares at what he described as a premium to their market net asset value, suggesting the proposal was aimed more at preserving management positions than benefiting shareholders. He has been vocal about his disapproval of the company's capital allocation and has called for a shift away from its current Bitcoin strategy.
In response to Brown's demands, Empery Digital characterized his claims as distortions aimed at furthering his interests. The company stated that management's previous approach to Brown was intended to align with the best interests of all shareholders. The ongoing conflict underscores rising tensions within Empery Digital regarding its business model, which heavily relies on Bitcoin holdings.