Empery Digital Inc. 8-K

What Happened

• Empery Digital Inc. announced on Feb 10, 2026 that it entered into a First Amendment to its Master Loan Agreement with Two Prime Lending. The amendment raises the interest rate on outstanding and new borrowings from 6.50% to 7.50% per annum and reduces required collateral from 250% to 174% of borrowings. The lender released 350 Bitcoin (BTC) to the company on the amendment’s effective date, with additional collateral releases scheduled on or before Feb 20, 2026. The loan’s aggregate borrowing capacity (up to $100 million), maturity date (Oct 9, 2027), and lack of commitment fees or prepayment penalties remain unchanged.

Key Details

• Interest rate increased from 6.50% to 7.50% per year effective Feb 10, 2026.
• Collateral requirement reduced from 250% to 174% of borrowed amounts; 350 BTC released immediately, more to be released by Feb 20, 2026.
• Aggregate borrowing capacity remains up to $100 million; maturity remains Oct 9, 2027.
• Separately, as of Feb 10, 2026 the company repurchased 15,882,992 shares under its $200 million buyback program at an average price of $6.63; shares outstanding are 35,537,243 (including effect of 870,240 pre-funded warrants).

Why It Matters

• The amendment frees Bitcoin collateral (350 BTC now, more soon), which the company says can be used for potential sale or other corporate purposes—improving liquidity or strategic flexibility.
• Higher interest ( +1.00 percentage point) raises the company’s borrowing cost on MLA debt going forward, which could modestly increase financing expense.
• Lower collateral haircut reduces the amount of assets tied to the loan, decreasing pledged encumbrances on the company’s crypto holdings.
• Ongoing share repurchases materially reduce outstanding shares and reflect management’s capital-return activity; investors should consider impacts on share count and cash/crypto liquidity.