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Empery Digital takes 8% stake in Cardinal Data Power with $20 million investment

Empery Digital takes 8% stake in Cardinal Data Power with $20 million investment

The investment is part of Cardinal Data Power’s $70 million Series A and comes as Empery redirects capital from its Bitcoin treasury strategy toward AI infrastructure and debt repayment.

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Fact Check
The official Business Wire press release from Empery Digital directly confirms every element of the claim: a $20 million preferred equity investment, ~8% ownership stake in Cardinal Data Power, part of a ~$70 million Series A round (led by Hood River Capital Management), funding CDP's first AI/HPC data center campus in West Texas. Empery is described as a Nasdaq-listed bitcoin treasury company (NASDAQ: EMPD). Secondary sources (PANews, Phemex) corroborate the same figures. The claim's characterization as 'preferred stock' matches the release's 'preferred equity investment.'
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Summary

Empery Digital said it invested $20 million in Cardinal Data Power, acquiring an approximately 8% stake in the private developer of powered data center campuses. The investment is part of Cardinal Data Power’s roughly $70 million Series A financing and will support development of a 750-megawatt data center campus in West Texas, with first power expected in 2027, expansion to about 1 gigawatt by 2029 and an eventual buildout exceeding 5 gigawatts. Cardinal focuses on sites for artificial intelligence and high-performance computing workloads, combining power generation, natural gas supply and electrical infrastructure to speed development of large-scale computing facilities. The deal also marks Empery’s latest shift away from its Bitcoin treasury strategy. Earlier this month, the company said it sold about 1,400 Bitcoin over two months for roughly $87.1 million to fund AI infrastructure investments and repay debt, reducing its holdings to 1,514 BTC from a peak of 4,081 BTC before it began trimming the position in March, according to BitcoinTreasuries.NET.

Terms & Concepts
  • Series A: An early-stage venture funding round for a private company.
  • high-performance computing: Advanced computing used for intensive workloads such as AI model training and large-scale data processing.
  • Bitcoin treasury strategy: A corporate approach of holding Bitcoin as a significant reserve asset on the balance sheet.