Empery Digital Commits $65M for 25% Stake in 150MW Midwest AI Data Center
- Empery Digital is investing $65 million for a 25% ownership stake in an entity acquiring a 150MW Midwest facility for AI data center conversion, implying a total equity value of roughly $230 million [1][2]
- Hunt Properties affiliate TexStack Infrastructure (Cardinal Power) holds the remaining 75% stake and will serve as managing member of the acquisition entity [1]
- The site has operated as a power-intensive industrial facility for three years and includes an owned substation with approximately 150MW under an existing power agreement, expandable to ~300MW [2]
- A non-binding letter of intent has been executed with a tenant described as a 'high investment grade global leader in AI computing hardware,' with potential lease payments of up to $1 billion [2]
- Empery Digital has a market capitalization of roughly $114 million and just 15 full-time employees — the $65 million commitment exceeds half its current market cap [3]
Empery Digital (NASDAQ: EMPD), the Nasdaq-listed company formerly known as Volcon, has entered a definitive agreement to invest $65 million for a 25% ownership stake in an entity acquiring a strategically located Midwest facility for conversion into an AI data center. The deal, announced June 30, is expected to close in Q3 2026 [1][2].
Hunt Properties, the Dallas-based real estate development firm with a portfolio valued at over $2.5 billion, is partnering with Empery through its affiliate TexStack Infrastructure, a subsidiary of Cardinal Power. TexStack will hold the remaining 75% of common units and serve as managing member of the acquisition entity, having contributed $2.5 million in-kind consideration [1].
The target facility has operated as a power-intensive industrial site for the past three years and includes an owned substation with approximately 150MW of currently available capacity under an existing power agreement. The partners say the site could be expanded to roughly 300MW [2].
Empery Digital has already contributed $2.9 million toward the $65 million commitment. The company, which rebranded from Volcon in July 2025 as part of a Bitcoin treasury pivot, said it may liquidate Bitcoin holdings to fund this and future data center investments [1].
The Deal Structure
The $65 million investment values the full acquisition entity at approximately $230 million on a 100% equity basis. Empery Digital's 25% stake is structured as common units in a newly formed entity, with Cardinal Power's TexStack Infrastructure contributing the remaining capital and serving as managing member [1].
An affiliate of Hunt Properties has executed a non-binding letter of intent to finalize a triple-net lease with a tenant described as a 'high investment grade global leader in AI computing hardware' serving a global AI hardware company. If completed, the proposed lease could generate up to $1 billion in payments over its term — a figure the partners say could roughly double if power capacity is expanded to 300MW [2].
The Site
The specific Midwest location has not been disclosed. The facility's existing infrastructure — including an owned substation and a power agreement covering approximately 150MW — is a key part of the value proposition, as greenfield data center developments in the region routinely face 3-5 year timelines for utility interconnection [2].
The partners have indicated the site's power capacity could be expanded to approximately 300MW, though no details on the timeline or capital required for that expansion have been provided [2].
The Operators
Empery Digital is a micro-cap company headquartered in Round Rock, Texas, with a market capitalization of roughly $114 million and 15 full-time employees. The company originally manufactured electric off-road vehicles under the Volcon brand before pivoting to a Bitcoin treasury strategy in July 2025. It now describes itself as focused on digital infrastructure and has said it will discontinue its Bitcoin-focused treasury dashboard [3][1].
The $65 million commitment represents more than half of Empery's current market cap, raising questions about how the company will fund the balance. Management has indicated it may sell Bitcoin holdings and pursue additional capital markets transactions [1].
Hunt Properties, by contrast, is a privately held commercial real estate firm founded in 1975 as part of the H.L. Hunt family's business empire. It has developed more than 9 million square feet of commercial real estate. The broader Hunt enterprise has also moved into data center power, signing a deal with Caterpillar to deliver up to 1GW of data center generation capacity across North America [4][5].
Pipeline and Outlook
Beyond the initial 150MW site, Empery and Hunt Properties have formed a broader strategic partnership to jointly originate, evaluate, and acquire powered land properties with secured tenants for AI and HPC data center development. The companies say they have identified additional pipeline assets but have not disclosed specifics [2].
The deal's economics hinge on converting the non-binding LOI with the unnamed compute tenant into a binding lease agreement. Triple-net leases, in which the tenant covers taxes, insurance, and maintenance, are the standard structure for hyperscale and AI data center facilities but offer lower returns to the landlord than colocation or powered-shell models [2].
Investors should note that the tenant LOI remains non-binding and the specific Midwest location has not been disclosed. The closing of the $65 million investment is subject to customary conditions and is expected in Q3 2026 [2].
Further sources
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