SCHEDULE: Highbridge Capital Management Discloses Stake in Empery Digital

Highbridge Capital Management, LLC has reported beneficial ownership of 9.9% of Empery Digital Inc.'s common stock, primarily through warrants subject to a 9.99% ownership blocker.

Summary

• Highbridge Capital Management, LLC (Highbridge) has filed a Schedule 13G, indicating beneficial ownership of 9.9% of Empery Digital Inc.'s common stock.
• The reported ownership includes 9,485,652 shares, which represents 9.9% of the outstanding common stock as of March 25, 2026.
• A significant portion of these shares are issuable upon the exercise of warrants held by Highbridge Funds.
• However, the exercise of these warrants is subject to a 9.99% ownership limitation (the '9.99% Blocker'), meaning Highbridge cannot exercise all warrants if it would exceed this threshold.
• The filing states that the actual number of shares beneficially owned, after giving effect to the 9.99% Blocker, is less than the reported number of shares issuable upon full warrant exercise.
• Highbridge Capital Management, LLC is an investment adviser to certain funds and accounts.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it primarily reports on an existing ownership stake and the mechanics of warrant exercise, rather than new strategic developments or financial performance.

Positives

• Highbridge Capital Management, LLC, a significant investment entity, has taken a notable position in Empery Digital Inc., potentially signaling confidence in the company's future prospects.
• The disclosed stake of 9.9% indicates substantial investment interest.

Negatives

• The beneficial ownership is constrained by a 9.99% ownership blocker on warrants, limiting Highbridge's ability to fully exercise its potential share acquisition.
• The actual number of shares beneficially owned is less than what would be issuable upon full warrant exercise due to this blocker.

Risks

• The 9.99% ownership blocker on warrants limits the ability to exercise all potential shares, which could impact future control or influence.
• The filing does not detail specific risks related to Empery Digital Inc.'s business operations, but the structure of the warrant ownership implies potential complexities in maximizing shareholding.

Future Outlook

The filing does not contain forward-looking statements or specific guidance from Empery Digital Inc. It primarily reports on the ownership stake of Highbridge Capital Management, LLC.

Management Comments

• The filing should not be construed as an admission that any of the foregoing persons or the Reporting Person is, for the purposes of Section 13 of the Securities Exchange Act of 1934, the beneficial owner of the securities reported herein.
• The Highbridge Funds have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the shares of Common Stock reported herein.
• Highbridge Tactical Credit Master Fund, L.P., a Highbridge Fund, has the right to receive or the power to direct the receipt of dividends or the proceeds from the sale of more than 5% of the outstanding Common Stock.
• By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11.

Industry Context

StockSavvy.ai notes that significant stake acquisitions by investment managers, particularly those involving warrants, are common in the capital markets as a means to gain exposure to potential upside while managing risk. The 9.99% blocker is a standard mechanism to avoid triggering beneficial ownership thresholds that require more extensive reporting or regulatory scrutiny.

Stakeholder Impact

• Shareholders: The acquisition of a significant stake by a known investment manager like Highbridge Capital Management may be viewed positively, suggesting potential for increased institutional interest or future strategic involvement. However, the limitations imposed by the warrant blocker might temper immediate expectations of control changes.
• Creditors: No direct impact on creditors is indicated by this filing.
• Employees: No direct impact on employees is indicated by this filing.
• Suppliers: No direct impact on suppliers is indicated by this filing.
• Customers: No direct impact on customers is indicated by this filing.

Key Dates

Keywords

Empery Digital Inc., Highbridge Capital Management, Schedule 13G, Beneficial Ownership, Warrants, Ownership Blocker, Common Stock, SEC Filing, Investment Adviser