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AUSTIN, Texas - Volcon, Inc. (NASDAQ:VLCN), whose stock has surged over 120% in the past week according to InvestingPro data, announced Monday it has closed a private placement raising over $500 million and plans to allocate more than 95% of the proceeds to acquire Bitcoin as part of its new treasury strategy. The company’s current financial health score stands at "Fair," with a notable current ratio of 5.09x indicating strong short-term liquidity.
The company currently holds 280.14 BTC on its balance sheet, including 235.83 BTC received in lieu of cash subscriptions in the private placement. Volcon has entered into a Strategic Digital Assets Services Agreement with Gemini to execute its Bitcoin strategy. This strategic shift comes as InvestingPro analysis shows the company has been rapidly burning through cash, with negative free cash flow of $15.45 million in the last twelve months.
As part of its strategic shift, Volcon plans to change its name to Empery Digital, Inc. and its ticker symbol to EMPD in the coming weeks. The company’s power sports business will be rebranded as Empery Mobility.
The private placement included participation from crypto venture capital firms and blockchain infrastructure providers such as FalconX, Pantera, Borderless and Relayer Capital, as well as traditional financial investors and the company’s management team.
Ryan Lane, a founder and principal at Empery Asset Management, has joined Volcon as Co-CEO and Chairman of the Board. The company has also appointed Ian Read, former CEO of Pfizer, Rohan Chauhan, Director of Strategy at Gemini, and Matthew Homer to its Board of Directors.
"I look forward to fulfilling our promises to investors by operating a low cost, capital efficient, globally trusted bitcoin treasury strategy that will stand the test of time," said Lane in the press release statement.
John Kim, co-CEO of Volcon, stated the company will reposition its power sports business to an asset-light model with limited working capital requirements.
The securities were offered in a private placement under Section 4(a)(2) of the Securities Act and/or Regulation D. The company has agreed to file a registration statement with the SEC for the resale of shares issued in connection with the private placement.
Clear Street LLC acted as lead placement agent and Aegis Capital Corp. served as co-placement agent and exclusive financial advisor for the transaction. With the stock currently showing signs of being overvalued according to InvestingPro’s Fair Value analysis, investors seeking detailed insights can access over 15 additional ProTips and comprehensive financial metrics through an InvestingPro subscription.
In other recent news, Volcon Inc. has announced a significant strategic shift with a $500 million private placement aimed at acquiring Bitcoin as its primary treasury reserve asset. The company entered into agreements with institutional and accredited investors to sell approximately 50.1 million shares of common stock at $10.00 per share, with the offering expected to close around July 21, 2025. Empery Asset Management led the investment, alongside several crypto venture capital firms, and as part of this pivot, Ryan Lane of Empery Asset Management has been appointed co-CEO and Chairman of Volcon’s Board of Directors. Additionally, Volcon has announced a 1-for-8 reverse stock split, which will consolidate every eight shares of issued and outstanding common stock into one share. This move will reduce the outstanding shares from approximately 4.3 million to around 0.54 million, while the authorized share count remains unchanged at 250 million.
In a separate development, Volcon has received a purchase order for 1,000 golf carts from Advanced EV as part of a market test for a new model developed with Super Sonic. This marks the second multi-million dollar agreement for Volcon in recent weeks, suggesting a positive growth trajectory for the company. CEO John Kim expressed optimism about the partnership with Advanced EV, viewing it as a foundation for future collaboration. Furthermore, Volcon has resumed its share repurchase program, indicating confidence in its financial health and future prospects.
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