Austin, July 17, 2025: Electric vehicle manufacturer Volcon Inc. (NASDAQ: VLCN) has taken a surprising leap into the world of cryptocurrency. On Thursday, the Texas-based company announced it is raising approximately $500 million through a private placement of 50.1 million shares priced at $10 each. The majority of these funds at least 95% will be used to purchase Bitcoin.
Volcon’s pivot
to Bitcoin marks a significant transformation in its corporate strategy,
positioning the digital asset as its primary treasury reserve. The company,
which currently holds a modest market cap of $5.02 million, has seen its stock
surge over 17% in just the past week, reflecting renewed investor interest.
According to
InvestingPro data, Volcon appears undervalued based on fair value metrics,
despite ongoing operational challenges, including a negative EBITDA of -$24.97
million over the last twelve months. Nonetheless, the bold crypto move has
energized market watchers and brought Volcon back into the spotlight.
Empery Asset Management Leads Investment Round
Empery Asset
Management is leading the investment, with support from top crypto-focused
firms such as FalconX, Pantera Capital, Borderless Capital, RK Capital, and
Relayer Capital. This unique mix of crypto-native and traditional institutional
investors reflects the growing overlap between finance and blockchain
technology.
As part of this
deal, Ryan Lane co-founder and Managing Member at Empery has been appointed as
co-CEO and Chairman of Volcon’s Board of Directors. He joins current co-CEO
John Kim, who will remain focused on the company’s core electric off-road
business.
New board
members include Ian Read, Rohan Chauhan, and Matthew Homer, each bringing
valuable expertise as Volcon shifts from traditional vehicle manufacturing to a
hybrid crypto-focused business model.
Partnering with Gemini to Secure Bitcoin Holdings
Volcon has
signed a Strategic Digital Assets Services Agreement with Gemini Nustar LLC, an
affiliate of Gemini Trust Company. Gemini will help manage Volcon’s Bitcoin
holdings and ensure secure, transparent custody of its new digital treasury.
This
partnership aims to give Volcon both credibility and confidence as it steps
into the volatile world of crypto.
Electric Vehicle Plans Still On the Roadmap
Despite the
crypto pivot, Volcon is not abandoning its EV operations. The company says it's
adopting a lean, asset-light model for its electric off-road vehicle business.
A recent highlight is a significant order for 1,000 golf carts from Advanced
EV. This is part of a new initiative with Super Sonic to test the market with a
jointly developed model.
Volcon is also
navigating new challenges brought on by increased tariffs on imports from China
and Vietnam—where its vehicles are currently manufactured. The company is
exploring options such as assembling vehicles in the U.S. or raising prices to
offset these added costs.
Financial Snapshot: Struggles Continue, But Optimism
Grows
In Q1 2025,
Volcon reported revenue of $736,049 and a net loss of $2.46 million. While
these figures indicate continued financial stress, they represent an
improvement compared to the last two quarters of 2024.
The company is
currently trading at a price-to-book ratio of just 0.3 raising speculation that
its stock may be undervalued. Its current ratio stands at a healthy 5.09,
suggesting a solid liquidity position even as it undergoes major changes.
Volcon has also
resumed its share buyback program, a move many see as a signal of management’s
confidence in the future.
Reverse Stock Split and Market Strategy
To better align
with its new direction, Volcon recently executed a 1-for-8 reverse stock split,
reducing its outstanding shares from 4.3 million to roughly 0.54 million. This
strategic step improves share structure and positions the company for better
performance in capital markets.
Final Thoughts: Is Volcon the Tesla of Crypto?
Volcon’s
transformation from a small electric vehicle manufacturer to a Bitcoin-focused
company is one of the boldest moves in the space this year. It reflects a
growing trend of companies using Bitcoin as a hedge against inflation and
economic uncertainty.
Whether this
strategy will pay off remains to be seen, but Volcon has certainly caught the
attention of both retail and institutional investors alike.
For now, Volcon
is riding the crypto wave and only time will tell if this electric leap into
digital finance turns into a long-term win.
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