The Company That Allocated 500 Million Dollars for Bitcoin Sees Its Price Soar by 330%!

U.S.-based electric off-road vehicle manufacturer Volcon (VLCN) announced that it will allocate more than 95% of the proceeds from a 500 million dollar stock sale to the purchase of Bitcoin (BTC).

Texas-based electric off-road vehicle manufacturer Volcon drew attention with its announcement. The company stated that it has signed a private stock sale of 500 million dollars to invest in Bitcoin for its corporate treasury. It was noted that at least 95% of the revenue from the sale will be allocated to the purchase of Bitcoin, and these BTC assets will be stored through the famous cryptocurrency exchange Gemini.

Volcon's co-CEO John Kim described the Bitcoin move as a strategy to preserve the company's long-term value. Kim stated, "In this period of accelerating monetary value loss, holding Bitcoin on our balance sheet is a strategic way to preserve shareholder value and align with the digital future." The company also appointed Ryan Lane, co-founder of Empery Asset Management, as co-CEO and Chairman of the Board to manage this move.

Volcon's 500 million dollar funding round saw participation from well-known companies in the crypto sector, including Pantera Capital, FalconX, Borderless, and Relayer Capital, as well as traditional financial players. The deal is expected to be completed by July 21.

Following the news, Volcon shares surged by more than 330% to reach 40.5 dollars before the market opened. With this development, Volcon is preparing to join the ranks of public companies that hold a total of 860,553 BTC, according to data.