Empery Digital Invests $20 Million in Cardinal Data Power, Acquiring Approximately 8% Equity
Empery Digital Invests $20 Million in AI Data Center
Bitcoin vault company Empery Digital has invested $20 million in preferred shares of Cardinal Data Power, acquiring approximately 8% equity.
This funding is part of Cardinal's approximately $70 million Series A financing, supporting its first 750 MW AI data center park in West Texas, which can be expanded to over 5 GW in the long term.
The investment is event-driven, with funds flowing from Bitcoin reserves to electricity-intensive AI infrastructure, benefiting developers with behind-the-meter power supply capabilities, while traditional grid-dependent data center projects face pressure.
Source: Public Information
ABAB AI Insight
As a Nasdaq-listed Bitcoin vault company, Empery Digital's previous strategy was to accumulate BTC. This shift towards equity in AI data centers continues the trend of Bitcoin holders like MicroStrategy allocating part of their reserve capital to high-power computing assets in recent years.
In terms of capital strategy, Cardinal Data Power relies on Hunt Properties' real estate resources, focusing on off-grid natural gas power generation facilities in West Texas. The first phase of 750 MW is expected to be operational by 2027, with funds allocated for land, power generation, and data center construction, motivated by securing long-term electricity premiums for AI training and inference.
Similar cases can be seen with early financing of CoreWeave and Vantage Data Centers, as well as xAI's expansion in Texas. The industry is currently in a phase of transitioning from cloud vendors building their own facilities to third-party power supply parks.
This essentially represents a restructuring of the industrial chain, driven by AI computing demand far exceeding the speed of grid expansion, forcing capital to directly bind to integrated "power generation + data center" projects to secure scarce capacity.
ABAB News · Cognitive Laws
Bitcoin reserves ultimately flow to electricity
Computing power bottleneck = Land × Power rights
Off-grid power sources determine the upper limit of AI expansion