Volcon Inc. (NASDAQ: VLCN), a leader in electric powersports, has announced a major step in its treasury strategy by significantly increasing its Bitcoin holdings. The company now owns 3,183.37 BTC, acquired at an average price of $117,697 per Bitcoin, totaling approximately $375 million. This strategic move reinforces Volcon’s long-term belief in Bitcoin as a store of value and a key asset for its balance sheet.
Volcon Leverages Hedge Fund Strategies to Strengthen BTC Position
To enhance its Bitcoin strategy, Volcon is also engaging in the sale of short-term put contracts. This approach allows the company to potentially purchase more Bitcoin at lower prices, while also collecting option premiums to reduce the overall cost of acquisition. The tactic showcases the leadership’s financial expertise, using hedge fund-style tools to creatively and efficiently grow its BTC reserves.
Co-CEO Ryan Lane emphasized Bitcoin’s strength as a treasury asset, noting the company’s focus on giving investors streamlined exposure to BTC without excessive dilution. “Our aim is to build long-term value for shareholders,” said Lane, “while strategically lowering our effective Bitcoin acquisition cost.”
$100 Million Stock Buyback Plan Signals Confidence and Value Focus
In another key development, Volcon’s board has approved an increase in its stock repurchase program, now authorizing up to $100 million in buybacks over the next 24 months. This move reflects the company’s commitment to supporting shareholder value and aligning its capital strategy with long-term BTC accumulation.
The repurchase program offers flexibility to buy back shares when trading below net asset value (NAV), potentially increasing the amount of Bitcoin held per share. Volcon’s dual strategy of accumulating BTC and reducing outstanding shares positions it to maximize value, especially during favorable market conditions.
As Volcon continues to innovate in electric vehicles and digital assets, these financial moves signal a forward-thinking approach that aims to enhance shareholder returns while embracing Bitcoin as a foundational component of its corporate treasury.
