Volcon raises $500 million to build a Bitcoin treasury

Volcon and the restructuring plan

Known for its electric off-road products such as the Brat (urban electric scooter) and the Grunt (e-bike for hunting and outdoor activities), Volcon has faced some financial problems in 2024, resulting in a net loss exceeding $45 million. Issuing 50,142,851 shares at $10 per share is a bold move to raise over $500 million in that context. Major crypto venture capital funds such as FalconX, Pantera Capital, Borderless Capital and Relayer Capital, as well as lead investor Empery Asset Management and conventional financial investors, participated in this round of funding.

The main objectives of Volcon’s strategy are:

• Accumulating Bitcoin for Reserve: With the goal of building a treasury of high-value digital assets, the company intends to use at least 95 percent of the total capital raised, approximately $475 million, to purchase Bitcoin. As of the date of the announcement, Volcon held 280.14 BTC, of which 235.83 BTC were received in the round as cash payments.

• Corporate restructuring: Volcon announced that it is considering changing its name to Empery Digital Inc. and switching its trading ticker to EMPD, while repositioning its off-road sports vehicle business to Empery Mobility under an “asset-light” model, reducing its working capital needs.

• Partnership with Gemini: Volcon can custody and execute secure and transparent Bitcoin transactions through a strategic digital asset services agreement with Gemini Nustar LLC, a subsidiary of Gemini Trust Company.

Volcon co-CEO John Kim described the Bitcoin holdings as “a strategic move to protect shareholder value amid rapid currency depreciation and shape the future of digital finance.”

Bitcoin Treasury Trends in Business

MicroStrategy has been a trendsetter in integrating Bitcoin into financial strategies since 2020, leading to the Volcon event. According to data provided by The Block, companies that own Bitcoin treasuries—excluding Block, Tesla, and Coinbase—now hold a total of 745,580 BTC, equivalent to $87.7 billion, with MicroStrategy leading the way with 601,550 BTC.

In addition to MicroStrategy, businesses such as GameStop, Twenty One Capital, and Trump Media & Technology Group have also announced plans for Bitcoin treasuries in 2025, based on Bitcoin's widespread acceptance as a reserve asset. With its recent trading price up 3% on the week, Bitcoin is considered "digital gold" due to its inflation resistance and potential for long-term appreciation. Companies like Volcon accumulate Bitcoin as a way to hedge against major economic risks and attract investors, increasing the value of their shares. Volcon (VLCN) shares surged 135% immediately after the announcement, hitting a high of $43.38 before settling at $27.07, representing a 193% gain.

Conclude

While Volcon’s strategy presents many opportunities, it also comes with risks. Bitcoin is notoriously volatile, and allocating 95% of its capital to a single asset could leave Volcon vulnerable to market volatility. Additionally, the company needs to ensure compliance with U.S. Securities and Exchange Commission (SEC) regulations, especially since the shares issued are not registered under the Securities Act of 1933. Finally, the rebranding and business model transformation require effective management to maintain shareholder and customer confidence in both digital assets and electric vehicles.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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