Shares of Volcon (NASDAQ: VLCN), the Texas-based electric vehicle company, surged by an astounding nearly 135% on Thursday following its announcement of a massive $500 million capital raise primarily for Bitcoin acquisition. A remarkable 95% of these funds are earmarked directly for BTC, positioning Volcon as the latest company to strategically integrate cryptocurrency into its treasury.
In a private placement deal, Volcon is selling over 50 million shares at $10 apiece to fund this ambitious digital asset pivot. Addressing the unconventional move for a powersports manufacturer, Co-CEO John Kim articulated the company's rationale: “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.”
This aggressive foray into Bitcoin is a particularly bold move for Volcon, which reported a substantial $45 million net loss in 2024. The company's shares had already faced significant headwinds this year, down more than 35% before the Bitcoin treasury news ignited its explosive rally. Volcon is now joining the ranks of companies adopting the "Bitcoin treasury" playbook, a strategy famously popularized by Michael Saylor's MicroStrategy Inc., which currently holds a staggering $72 billion worth of BTC.
Collectively, over 140 companies globally now hold Bitcoin on their balance sheets, totaling a collective $102.2 billion, according to bitcointreasuries.net. While MicroStrategy holds the lion's share, other firms like SharpLink and DeFi Dev Corp are diversifying the "digital vault" trend by leaning into Ethereum and Solana.
Volcon's significant Bitcoin buy-in is backed by an impressive roster of institutional investors.
Empery Asset Management is leading the funding round, with notable participation from crypto-native and traditional finance firms including FalconX, Pantera Capital, Borderless, RK Capital, and Relayer. The deal is anticipated to finalize by July 21, pending a smooth closing process.
It's crucial to note that Volcon is not a typical tech startup making a crypto pivot. The company specializes in building rugged off-road electric vehicles, with a product lineup that includes the "Brat," a city commuter resembling a motorcycle, and the "Grunt" e-bike, designed for hunters and outdoor enthusiasts. This makes their deep dive into crypto particularly intriguing.
The news from Volcon comes as the broader cryptocurrency market shows renewed strength. Bitcoin is currently hovering around $120,200, up 3% over the past week, demonstrating resilience despite recent volatility. Meanwhile, institutional giants like BlackRock are also making significant moves, with the firm filing to add staking capabilities to its Ethereum ETF, ETHA. This development suggests increased potential for yield generation from Ethereum holdings, signaling overall bullish sentiment in the institutional crypto space.
Whether Volcon's substantial Bitcoin treasury gamble will ultimately pay off remains to be seen. However, judging by the explosive reaction in its stock price and the influx of prominent investors into the funding round, the market is undoubtedly intrigued by this pioneering strategy.
July 2025, Cryptoniteuae