Empery Digital announced that it has entered into a definitive agreement for a $65 million investment representing a 25% ownership stake in a private entity acquiring a Midwest facility to be converted into an AI data center.
The facility is expected to support approximately 150 megawatts of currently available capacity under an existing power agreement with a local utility.
A recent load study confirmed the facility’s ability to nearly double its available power capacity to approximately 300 megawatts for AI workloads.
The facility has operated as a power-intensive industrial site for the past three years and includes an owned substation and related infrastructure.
An affiliate of Hunt Properties, which is the managing member of the private entity, has executed a non-binding letter of intent to finalize a triple net lease that could potentially produce $1 billion in payments.
The lease would be with a leading provider of compute that services a global leader in AI computing hardware.
Empery Digital said the arrangement would provide strong credit quality and long-duration cash flow visibility.
The investment is expected to close in the third quarter of 2026, subject to customary closing conditions.
Empery Digital and Hunt Properties also entered a strategic partnership to jointly originate, evaluate, and acquire powered land properties with secured tenants suitable for AI and high-performance computing data center development.
The partnership will combine Hunt Properties’ experience in utility interconnection, power procurement, and energy infrastructure development with Empery Digital’s public company platform, capital markets expertise, and balance sheet, including its Bitcoin holdings.
Empery Digital said the investment will allow the company to capitalize on growing demand for compute and power while expanding its strategy beyond reporting net asset value based solely on Bitcoin holdings.
Effective immediately, the company will discontinue its treasury dashboard because management believes reporting company NAV based on Bitcoin holdings no longer fully reflects the company’s total NAV.
Empery Digital said it is working with Hunt Properties on additional investments where the parties are seeking to execute similar agreements.
The company plans to provide additional updates about the partnership and pipeline assets in the coming months as they materialize.
Clear Street served as financial advisor and Ropes & Gray served as legal counsel to Empery Digital.
Lake Street Capital Markets served as financial advisor to the acquiring entity, and Davis Polk & Wardwell served as legal counsel.
Empery Digital employs a Bitcoin treasury strategy focused on aggregating Bitcoin and maximizing Bitcoin per share while pursuing long-term shareholder value.
Hunt Properties was founded in 1975 to provide real estate management and advisory services and has developed and managed more than $2.5 billion in real estate asset portfolios since 1987.
KEY QUOTES:
“This investment is a very unique opportunity to capitalize on the exploding demand for compute and power and partner with some of the best energy operators and investors in North America for the benefit of Empery Digital shareholders. By leveraging the combined strengths of Hunt Properties and Empery Digital, we believe we will be able to identify, fund and execute on future opportunities that create significant value.”
Ryan Lane, Co-CEO of Empery Digital
“Access to reliable, scalable power infrastructure is becoming increasingly critical as the use of AI and HPC continues to expand and meeting that demand requires operational capability and sophisticated access to capital. Empery Digital’s exceptional team and deep capital markets expertise makes them the ideal partner to help us fund the power and infrastructure needed to support large-scale, high-density HPC projects.”
“World-class customers have been clear about what they need: resilient, mission-critical power delivered at scale and on timelines that match their ambitions. We are focused on translating that understanding into a best-in-class platform that earns the trust of these customers and can scale to meet their needs.”
Al Allred, Chairman of Hunt Properties
