Empery Digital Accuses ATG Capital of Fee-Driven Proxy Fight Ahead…

Event summary

Empery Digital sent a letter to shareholders ahead of its October 14, 2026 annual meeting, accusing ATG Capital's Gabriel Gliksberg of prioritizing legal fee recovery over strategic vision.
The company claims Gliksberg spent nearly $10 million in legal fees aiming to recoup them from the board if his nominees are elected.
Empery Digital alleges Gliksberg systematically destroyed communications and provided untruthful testimony, as sanctioned by the Delaware Court of Chancery.
ATG's nominees admitted under deposition they had no strategic plan for Empery Digital if elected to the board.
Empery Digital refutes ATG's claims about payroll increases and management fees, calling them categorically false.

The big picture

This proxy fight highlights the tension between activist investors focused on short-term fee recovery and incumbent boards prioritizing long-term strategic vision. Empery Digital's defense against ATG Capital's nominees underscores broader industry dynamics where activist campaigns increasingly target technology and infrastructure companies with high valuation uncertainty. The outcome will signal how effectively boards can defend against fee-driven activism while maintaining focus on core business strategies like AI infrastructure and data center investments.

What we're watching

Proxy Fight Outcome: Whether Empery Digital's shareholders side with the current board or ATG's nominees in the October 14 vote, which could determine the company's strategic direction.
Legal Fee Recovery: How ATG Capital attempts to recover its legal fees and whether Empery Digital's insurance coverage holds up under scrutiny.
Board Oversight: The pace at which Empery Digital's board implements enhanced governance measures to address activist investor concerns.