ATG Capital Adds 3.9M Shares to Empery Digital, Betting on a Long‑Term Bounce Amid a 65% Year‑to‑Date Slide.

ATG Capital’s Fresh Stake Signals Confidence Amid a Volatile Stock

On February 2, 2026, ATG Capital Opportunities Fund LP, along with its affiliated entities, purchased an additional 131,962 shares of Empery Digital Inc. (EMPD) at an average price of $4.67—slightly above the day’s closing price of $4.64. This incremental holding brings the fund’s total stake to 3,940,817 shares, representing roughly 2.4 % of the outstanding shares. In the context of a stock that has slid 65 % year‑to‑date and closed below its 12‑month low, the purchase may be interpreted as a bullish signal from an institutional investor that is comfortable with the current valuation.

What Does the Deal Mean for Investors?

The transaction’s timing is notable. EMPD’s price has been on a steep decline, yet the ATG Fund is adding to its position at a point where the stock is trading near its 52‑week low. For shareholders, this move can be a double‑edged sword: on one hand, it suggests that the fund believes the share price is oversold and has room to rebound; on the other hand, it underscores the risk that the company may still be struggling to generate sustainable earnings, as indicated by the negative P/E ratio of –0.055. The fund’s incremental buy could also trigger increased demand pressure, potentially providing a short‑term support level if the market reacts positively to the institutional confidence.

ATG Capital’s Buying Pattern: A “Buy‑and‑Hold” Play

Looking back at ATG’s activity over the past month, the fund has steadily accumulated shares in EMPD: 114,447 shares on Jan 30, 190,971 on Jan 29, and 123,208 on Jan 28, before adding the recent 131,962 shares. The purchase prices have hovered in the $4.80–$5.10 range, slightly above the prevailing market price, indicating a willingness to pay a small premium for a long‑term position. This pattern—regular purchases at modest premiums and a focus on building a sizable, stable stake—suggests ATG is pursuing a buy‑and‑hold strategy rather than a short‑term trading play. The fund’s holdings have grown from 3,380,229 shares to 3,940,817 over the course of a few days, reflecting confidence in EMPD’s potential upside.

Implications for the Company’s Future

If ATG’s conviction proves correct, EMPD could benefit from a “long‑term institutional anchor” that may help smooth out volatility and provide a foundation for future capital raises or strategic initiatives. Conversely, should the company fail to generate positive earnings or a turnaround plan, the fund’s stake could become a liability, especially given the stock’s steep decline and weak valuation metrics. For the broader investor community, the ATG buy is a useful data point to monitor: a continued build in institutional ownership may be a harbinger of a price reversal, while a pause or sell‑off could confirm that the market has already priced in all available upside.

A Bottom‑Line Takeaway

The ATG Capital purchase adds another layer of institutional depth to an otherwise thinly‑traded share. While the fund’s historical buying pattern signals a long‑term commitment, the market’s reaction will hinge on EMPD’s ability to reverse its earnings slide and generate sustainable growth. Investors watching the stock should weigh the institutional confidence against the company’s weak fundamentals and consider whether the current valuation justifies a bet on a turnaround.