Bitcoin News Today: Volcon Acquires 3,183 BTC in $375M Bet, Sells Put Options to Offset Costs

Volcon Inc., recently rebranded as Empery Digital, has committed to a high-conviction Bitcoin strategy by acquiring 3,183 BTC at an average price of $117,697 per coin, totaling $375 million in holdings. The firm has further increased its exposure by selling short-dated put options at $115,000, $116,000, and $117,000, enabling potential additional BTC purchases below current market prices while offsetting costs via collected premiums. Simultaneously, Volcon announced a $100 million stock buyback program over two years to reduce equity float and enhance Bitcoin-per-share metrics, positioning itself as a public equity vehicle for Bitcoin treasury aggregation [1].

This move reflects a broader trend of public companies adopting Bitcoin as a corporate asset, but Volcon’s timing has drawn scrutiny. Unlike early adopters such as Strategy, which began accumulating BTC in 2020 at sub-$10,000 prices and now holds over 607,770 BTC (worth ~$72 billion), Volcon entered near all-time highs. Strategy’s stock has surged 3,500% since 2020, outpacing Bitcoin’s 1,100% rally, underscoring the advantages of early entry. Volcon’s approach relies on financial engineering—including active treasury management and hedge fund-style tactics—to mitigate its elevated purchase price [1].

Co-CEO Ryan Lane emphasized the firm’s goal of “offering investors the most efficient, least dilutive, and lowest-cost means of gaining exposure to Bitcoin through the public equity market treasury structure.” This strategy hinges on two assumptions: Bitcoin’s long-term appreciation will exceed its high entry cost, and creative financial tactics can outperform dilution risks. However, this contrasts with Strategy’s success, which stemmed from relentless long-term holding rather than complex hedging [1].

Analysts highlight the risks of Volcon’s strategy. By acquiring BTC near peak prices, the firm leaves minimal room for price correction before incurring losses. The put options, while potentially profitable if Bitcoin declines, expose the company to downward volatility. Additionally, the buyback program’s effectiveness depends on the firm’s stock outperforming broader market trends, a challenge given its late entry. Public companies now hold over 3% of all mined Bitcoin, intensifying competition in this space [1].

Volcon’s rebranding from an electric off-road vehicle manufacturer to a Bitcoin-focused entity underscores the sector’s volatility. Its success will depend on balancing aggressive exposure with operational resilience, a challenge compounded by Bitcoin’s price swings. The firm’s institutional backing, however, contrasts with Strategy’s $2 billion capital raise supported by Wall Street heavyweights like Morgan Stanley and Barclays. While Strategy’s scale provides a competitive edge, Volcon’s agility in deploying financial instruments could differentiate it.

Sources:

[1] [Volcon doubles down on Bitcoin at ATHs, trims float](https://crypto.news/volcon-doubles-down-on-bitcoin-at-aths-trims-float/)