Shares of electric vehicle maker Volcon (VLCN) soared over 270% on Thursday morning. The stellar rally came after the company disclosed a strategic shift in its financial strategy, opting to make Bitcoin (BTC-USD) its primary treasury reserve asset. This move will be funded by a $500 million private placement of common stock.
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VLCN has entered into a securities purchase agreement with some institutional and qualified investors to sell 50,142,851 shares of common stock at $10 per share. The company anticipates total proceeds exceeding $500 million, after accounting for placement agent fees and other issuance costs.
Empery Asset Management acted as the lead investor. Also, several crypto venture capital firms such as FalconX, Pantera, Borderless, RK Capital, and Relayer Capital participated in the private placement.
The deal is expected to close around July 21, 2025, subject to customary closing conditions. Upon completion, Volcon plans to deploy at least 95% of the net proceeds to acquire Bitcoin.
New Strategy Calls for New Management
Alongside the private placement, VLCN has entered into a Strategic Digital Assets Services Agreement with Gemini Nustar LLC to help Volcon manage and execute its digital asset strategy efficiently.
Further, Volcon has named Ryan Lane, co-founder of Empery Asset Management, as co-CEO and chairman of the board. Also, John Kim will continue in his role as co-CEO, focusing on the company’s core electric off-road powersports business.
This move makes Volcon a part of the growing number of companies adding digital assets to their balance sheets. It reflects their belief in Bitcoin’s long-term value and its role as a financial hedge.
Is Volcon a Good Stock to Buy?
According to the TipRanks AI analyst, VLCN stock received a score of 47 out of 100 with a Neutral rating. Further, the AI analyst has set a price target of $7.50 on Volcon stock, which implies a downside of over 74.5%.
