American electric vehicle manufacturer Volcon has splurged $500 million to purchase Bitcoin, with its stock price rising 135%.

American electric vehicle manufacturer Volcon announced it will raise $500 million through a private sale, with 95% of the funds allocated for the purchase of Bitcoin (BTC). Its stock price surged by 135% at one point. This move makes Volcon the latest company to treat Bitcoin as a strategic asset, highlighting the strategic position of BTC in corporate asset allocation.

Volcon will heavily purchase Bitcoin to cope with currency devaluation

Latest news from July, American electric off-road vehicle manufacturer Volcon announced it will raise $500 million, of which about 95% (i.e., $475 million) will be used to establish a Bitcoin Treasury to combat accelerated currency depreciation and enhance shareholder value.

Volcon Co-CEO John Kim stated: "In an era of rapid currency devaluation, holding Bitcoin is a strategic move to protect shareholder value and embrace a digital future."

After the news was announced, Volcon's stock price surged nearly 135% on Thursday, attracting widespread market attention.

Bitcoin treasury is becoming a new trend for enterprises

According to the announcement, Volcon will sell 50,142,851 shares of common stock at a price of $10 per share through a private sale, with Empery Asset Management leading the transaction. Other participants include FalconX, Pantera, Borderless, RK Capital, and Relayer Capital. This round of financing is expected to be completed around July 21.

Volcon is not an isolated case. Since 2020, the software company Strategy, led by Michael Saylor, has incorporated Bitcoin into its corporate asset allocation, currently holding over $72 billion worth of BTC, accounting for two-thirds of the total global corporate Bitcoin treasury.

According to data from bitcointreasuries.net, over 140 companies have established BTC reserves, totaling 102.2 billion USD. Additionally, some companies are exploring the establishment of treasuries based on Ethereum and Solana, such as SharpLink and DeFi Development Corp.

Background of Volcon's Transformation and Market Reaction

Volcon is an electric off-road vehicle manufacturer based in Texas, with products including the Brat for urban commuting and the Grunt electric motorcycle aimed at hunting or outdoor scenarios. Despite the company's net loss exceeding $45 million in 2024 and a 35% drop in stock price this year, the strategic transformation linked to Bitcoin has triggered a strong market rebound.

As of the time of writing, Bitcoin is priced at approximately $120,200, having risen about 3% in the past week.

Conclusion As more companies incorporate Bitcoin into their balance sheets, digital assets are gradually moving towards mainstream capital markets. Volcon's significant bet is another example of the integration of cryptocurrency with the real economy, providing investors and the market with a new reference sample.