18.07.2025 11:49

Electric vehicle manufacturer Volcon experienced a dramatic surge in its stock price, soaring nearly 135% on Thursday. This remarkable increase followed the company's announcement of a plan to establish a substantial Bitcoin treasury, fueled by a $500 million capital raise.

Volcon secured this significant funding through a private placement, selling 50,142,851 shares of its common stock at $10 per share. A substantial portion of these proceeds – 95% – will be directly invested in Bitcoin, a strategic move according to the company.

Volcon co-CEO John Kim explained the decision as a proactive measure to protect shareholder value in an environment of perceived monetary instability. He framed the Bitcoin investment as a forward-thinking approach, aligning the company with the evolving digital landscape. This move comes against a backdrop of considerable financial challenges for the firm; Volcon reported a net loss exceeding $45 million in 2024 and experienced a share price decline of over 35% earlier this year.

Volcon's strategy follows a trend among public companies, many of which are bolstering their financial positions by integrating Bitcoin and other cryptocurrencies into their balance sheets. This trend was significantly popularized by Michael Saylor's MicroStrategy, which has amassed over $72 billion in Bitcoin holdings since 2020, representing a substantial portion of the over $102.2 billion held by the more than 140 companies currently holding Bitcoin in their treasuries, according to data sourced from internet resources. Other companies, including SharpLink and DeFi Development Corp., have similarly adopted this strategy in recent months.