Volcon doubles down on Bitcoin at ATHs, trims float to signal conviction

Volcon’s $375 million Bitcoin stash comes with an unusual twist: it was purchased near peak prices. But instead of hedging, the firm’s leaning in, tightening equity and writing puts to increase exposure as it goes full Bitcoin on the balance sheet.

Volcon Inc. (NASDAQ: VLCN) recently disclosed it now holds 3,183 Bitcoin (BTC) valued at roughly $375 million, acquired at an average price of $117,697 per coin.

The company, which recently rebranded as Empery Digital, also revealed that it has sold short-dated put options at $115,000, $116,000, and $117,000, giving it the potential to acquire more BTC below current market prices while collecting option premiums to offset costs.

In parallel, the firm announced a major expansion of its equity buyback program, authorizing up to $100 million in share repurchases over the next two years. Volcon said this move is aimed at supporting net asset value and amplifying Bitcoin-per-share metrics.

Can Volcon’s Bitcoin gambit outmaneuver early movers?

Volcon, originally known for its electric off-road vehicles, formally adopted its Bitcoin treasury strategy on July 17, rebranding shortly after as Empery Digital.

But Volcon is late in entering an increasingly crowded field. Unlike early adopters like Strategy, which began stacking BTC in 2020 at sub-$10,000 prices, Volcon is entering the game at near all-time highs.

Additionally, public companies already hold over 3% of all Bitcoin ever mined, with Strategy alone controlling a staggering 607,770 BTC, a position worth roughly $72 billion at current prices.

Strategy’s success has been nothing short of meteoric: its stock has surged 3,500% since 2020, outpacing even Bitcoin’s own 1,100% rally. The firm’s recent $2 billion capital raise, backed by Wall Street heavyweights like Morgan Stanley and Barclays, proves institutional investors now see Bitcoin accumulation as a legitimate and potentially lucrative corporate strategy.

To mitigate the late entry, is deploying hedge fund-style tactics, including:

• Short-term put options to potentially buy more BTC below market price while collecting premiums
• A $100 million stock buyback to tighten its float and boost Bitcoin-per-share metrics
• Active treasury management, leveraging its team’s financial expertise to optimize entry points

Ryan Lane, Co-CEO of Volcon, said:

“As a continuous aggregator of BTC, we will leverage our team’s decades of hedge fund experience to implement creative ways to lower the effective purchase price of BTC as we look to offer investors the most efficient, least dilutive, and lowest-cost means of gaining exposure to Bitcoin through the public equity market treasury structure.”

Volcon’s strategy hinges on two risky assumptions: that Bitcoin’s long-term appreciation will outweigh its high entry price, and that its financial engineering can outpace dilution. Strategy succeeded because it bought early and held relentlessly. Volcon doesn’t have that luxury.