Volcon’s $375 million Bitcoin stash comes with an unusual twist. Purchased near peak prices. But instead of hedging, the company brings its equity tightening, and writing increases exposure as it becomes full Bitcoin on the balance sheet.
summary
- Now Empery Digital’s Volcon has revealed a $375 million Bitcoin position acquired near ATH at $117,697 per BTC.
- The company’s beneficial bets show a change in the public company’s Treasury playbook, but faces tough competition and limited space of error.
Volcon Inc. (NASDAQ: VLCN) recently owns 3,183 Bitcoin (BTC), valued at around $375 million, acquired at an average price of $117,697 per coin.
The company has recently been rebranded as Empery Digital, but has also revealed that it is selling short-term Put options at $115,000, $116,000 and $117,000, so it could potentially collect premiums of options and collect costs while earning more BTC below current market prices.
In parallel, the company announced a significant expansion in its stock repurchase program, allowing up to $100 million in stock repurchase over the next two years. Volcon said the move is intended to support net asset value and amplify Bitcoin per share.
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can Does Volcon’s Bitcoin Gambit outmaneize early invokers?
Originally known for its electric off-road vehicles, Volcon officially adopted its Bitcoin financial strategy on July 17th.
However, Volcon is slower to enter the increasingly crowded field. Unlike early adopters like the strategy that began accumulating BTC at a price of $10,000 in 2020, Volcon is taking part in the game at the highest ever high.
Additionally, public companies already own more than 3% of all mined Bitcoin, controlling an astounding 607,770 BTC with their strategy alone.
The success of the strategy was nothing more than a meteor. Its inventory has skyrocketed 3,500% since 2020, surpassing Bitcoin’s own 1,100% rallies. The company’s recent $2 billion capital raise, backed by Wall Street heavyweights like Morgan Stanley and Barclays, proves that institutional investors view Bitcoin accumulation as a legal and potentially lucrative corporate strategy.
To alleviate slow entries, we are implementing hedge fund-style tactics such as:
- Short-term put options to buy more BTC below market price while collecting premiums
- $100 million share buybacks to tighten floats and strengthen stock metrics per bitcoin
- Active financial management, leverage team financial expertise to optimize entry points
“We’re looking forward to seeing you in the future,” said Ryan Lane, Volcon co-CEO.
“As a continuous aggregator for BTC, we will leverage our team’s decades-long hedge fund experience to implement creative ways to lower the effective purchase price of BTC.
Volcon’s strategy rests on two dangerous assumptions. The long-term valuation of Bitcoin exceeds its high entry price, and its financial engineering could exceed its dilution. The strategy was successful because it was bought early and held mercilessly. Volcon doesn’t have that luxury.
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