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Investing.com -- Volcon Inc (NASDAQ:VLCN) stock skyrocketed over 300% after the electric off-road power sports company announced a major strategic shift toward Bitcoin investment through a $500 million private placement.
The Austin-based company revealed it has entered into securities purchase agreements with institutional and accredited investors for the sale of approximately 50.1 million shares of common stock at $10.00 per share. Volcon intends to use at least 95% of the gross proceeds to acquire Bitcoin as its "primary treasury reserve asset."
Empery Asset Management led the investment round, with participation from crypto venture capital firms including FalconX, Pantera, Borderless, RK Capital, and Relayer Capital, alongside traditional financial investors. The offering is expected to close around July 21, 2025.
As part of this strategic pivot, Volcon appointed Ryan Lane, co-founder and Managing Member of Empery Asset Management, as co-CEO and Chairman of the Board, effective immediately. The company also added three additional Empery team members to its board of directors.
"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," said John Kim, co-CEO of Volcon, who will continue leading the company’s electric vehicle business under what the company describes as "an asset light, low working capital model."
To execute its Bitcoin treasury strategy, Volcon has partnered with Gemini Nustar LLC, an affiliate of Gemini Trust Company. Clear Street LLC served as lead placement agent, while Aegis Capital Corp. acted as co-placement agent and exclusive financial advisor for the private placement.
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