Insider Trading July 10, 2026 06:12 PM

Big Digital Energy Insiders Acquire $16.7M in Preferred Stock Amid Strategic Shifts

Executive Chairman Joshua Kilgore, CEO Phillip Stanley, and COO Cody Smith, through Six Thirty AI LLC, purchase 16,700 Series D Convertible Preferred shares as the company navigates Nasdaq compliance and new colocation partnerships.

By Sofia Navarro
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BGDE

Six Thirty AI LLC, an entity managed by Big Digital Energy, Inc. (NASDAQ: BGDE) executives, has acquired 16,700 shares of the company's Series D Convertible Preferred Stock for $16.7 million on June 30, 2026. The transaction, disclosed via a Form 4 amendment on July 2, 2026, highlights insider confidence as the company addresses regulatory compliance and expands its operational footprint through a colocation agreement.

Big Digital Energy Insiders Acquire $16.7M in Preferred Stock Amid Strategic Shifts
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Key Points

  • Big Digital Energy insiders, including Joshua Kilgore, Phillip Stanley, and Cody Smith, purchased 16,700 shares of Series D Convertible Preferred Stock for $16.7 million, signaling potential confidence in the company's direction.
  • The company has regained compliance with Nasdaq Listing Rule 5550(b)(1) by maintaining $2.5 million in stockholders' equity, addressing previous regulatory concerns.
  • A new colocation agreement with an Endeavor Group affiliate involves the delivery of 25,000 mining computers and 75MW of compute capacity, structured on a 50/50 profit-sharing basis.

Big Digital Energy, Inc. (NASDAQ: BGDE) has seen significant insider activity as executives associated with the company's leadership have purchased a substantial block of preferred shares. On June 30, 2026, Six Thirty AI LLC, a firm managed by Big Digital Energy's Executive Chairman and director Joshua Kilgore, Chief Executive Officer and director Phillip Stanley, and Chief Operating Officer and director Cody Smith, acquired 16,700 shares of the company's Series D Convertible Preferred Stock. The total value of this transaction was $16,700,000, with each share purchased at a price of $1,000.


The transaction was formally disclosed in an amendment to a Form 4 filing, originally submitted on July 2, 2026. This amendment specifically added Six Thirty AI LLC as an additional reporting insider. The entity is controlled by Kilgore, Stanley, and Smith, who are identified alongside related entities Endeavor Blockchain LLC and PM Squared LLC as 10% owners of Big Digital Energy. The acquisition of these preferred shares is subject to the terms and conditions established in the Certificate of Designations for the Series D Convertible Preferred Stock.


According to the filing, the Series D Convertible Preferred Stock is convertible into common stock. Using a daily volume-weighted average price (VWAP) of $8.81 for Big Digital Energy's common stock on June 30, 2026, these preferred shares would convert into approximately 1,995,221 shares of common stock. The acquired preferred stock and its underlying common shares are pledged to YA II PN LTD pursuant to a Loan and Guaranty Agreement dated June 30, 2026.


Big Digital Energy's stock currently trades at $7.43, which is below the referenced VWAP, though it has delivered a 65% return over the past six months. InvestingPro analysis suggests the stock is undervalued, with 13 additional ProTips available including insights on the company's significant debt burden, which is particularly relevant given this loan-backed transaction.


In other recent developments, Big Digital Energy announced that it has regained compliance with Nasdaq Listing Rule 5550(b)(1). This rule mandates that companies maintain a minimum of $2.5 million in stockholders' equity to remain listed on the Nasdaq Capital Market. The company had previously fallen below this requirement under its former management.


Additionally, Big Digital Energy disclosed a strategic colocation agreement with an affiliate of the Endeavor Group. This agreement involves Endeavor purchasing and delivering around 25,000 mining computers while Big Digital provides approximately 75MW of compute capacity. The partnership operates on a 50%/50% profit-sharing basis, with Big Digital receiving all cash proceeds from the miners. Endeavor will be compensated with a mix of shares and warrants to purchase Big Digital's common stock.


These developments reflect recent strategic moves by Big Digital Energy to enhance its operational and financial standing.

Risks

  • Big Digital Energy faces a significant debt burden, as highlighted by InvestingPro analysis, which may impact its financial resilience despite the recent preferred stock transaction.
  • The conversion of preferred stock into common shares could dilute existing shareholders, potentially affecting stock price dynamics given the current trading level below the referenced VWAP.
  • The company's reliance on strategic partnerships and colocation agreements introduces operational dependencies that may impact its ability to execute its business model effectively.

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