- Volcon raised $500 million to start a Bitcoin treasury and plans to invest most of the funds in Bitcoin.
- The company’s stock price jumped nearly 135% after the announcement.
- Volcon will use 95% of the funds raised from selling over 50 million shares at $10 each to buy Bitcoin.
- More public companies are adding Bitcoin and other cryptocurrencies to their balance sheets to support finances.
- Volcon, a Texas-based electric vehicle manufacturer, reported a $45 million net loss in 2024 and saw its share price fall over 35% this year before the announcement.
Electric vehicle maker Volcon announced Thursday that it has secured $500 million in funding to establish a large Bitcoin treasury. The company said it will use almost all the new capital to purchase Bitcoin as part of its corporate financial strategy.
Volcon reached an agreement to sell 50,142,851 shares of its common stock at $10 per share through a private placement. Of the $500 million raised, 95% will go toward buying Bitcoin.
“In an era of accelerating monetary debasement, holding Bitcoin on our balance sheet represents a strategic move to safeguard shareholder value and align with a digital future,” said Volcon Co-CEO John Kim in a statement. After the news, Volcon’s stock soared nearly 135% in Thursday trading.
The deal comes as increasing numbers of public companies add Bitcoin and other digital assets to their treasuries to improve financial positions. According to a recent report, Volcon faced a net loss of over $45 million in 2024 and its share price had dropped more than 35% this year.
Many companies, including software firm Strategy, have adopted similar moves in recent years. Strategy holds more than $72 billion in Bitcoin as of this report. More than 140 companies together hold about $102.2 billion in Bitcoin, according to data from bitocointreasuries.net, with Strategy’s holdings accounting for the majority.
The private placement was led by Empery Asset Management, with participation from FalconX, Pantera, Borderless, RK Capital, and Relayer Capital. The deal is expected to close around July 21.
Based in Texas, Volcon designs and sells electric off-road vehicles, including the Brat (a vehicle for city use) and the Grunt e-bike. At the time of the announcement, Bitcoin was trading near $120,200, according to CoinGecko.
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