Simply put
- Volcon, an electric car manufacturer, announced it secured $500 million to support Bitcoin’s Treasury Department.
- The announcement led to a nearly 135% surge in the company’s stock on Thursday.
- This investment is part of a broader trend, as many companies are integrating Bitcoin into their financial strategies.
Volcon’s shares rose dramatically, almost 135%, after it revealed plans to raise $500 million to bolster the Bitcoin Treasury Department. There seems to be a growing number of companies considering Bitcoin as a significant piece of their overall strategy.
The firm will sell over 50 million common shares at $10 each, according to their statement. About 95% of the funds raised will be directed towards purchasing Bitcoin.
“In an age of increasing financial uncertainty, holding Bitcoin on our balance sheet helps safeguard shareholder value and positions us strategically for the digital future,” said Volcon co-CEO John Kim.
This initiative comes as many public companies are looking to incorporate Bitcoin and cryptocurrencies into their finances to enhance stability. Volcon has also indicated a net loss exceeding $45 million for 2024, with its stock declining more than 35% this year.
Michael Saylor’s software company made headlines by acquiring billions in Bitcoin starting in 2020 and now possesses over $72 billion in Bitcoin.
According to data, more than 140 companies have added Bitcoin to their assets, holding cryptocurrency valued at $100.2 billion. Strategic holdings account for a significant portion of this. Companies like Sharplink and Defi Development Corp. have also begun focusing on creating Treasury departments for Ethereum and Solana, respectively.
Volcon’s private placement is led by Empery Asset Management, with contributions from Falconx, Pantera, Borderless, RK Capital, and Relayer Capital. The deal is set to close around July 21st.
Based in Texas, Volcon designs and sells electric off-road power sports vehicles, including motorcycle-style models and Grant E-Bikes tailored for outdoor enthusiasts.
As of recent reports, Bitcoin was trading around $120,200, according to Coingecko, a cryptocurrency market data provider.
