Bitcoin News Today: Volcon Acquires $375M Bitcoin Stake at Near ATHs, Deploys Put Options and Buybacks to Cut Costs

Volcon Inc., rebranded as Empery Digital, has intensified its commitment to Bitcoin by acquiring a $375 million position at near all-time highs, signaling a high-conviction bet amid a growing trend of public companies integrating crypto into their treasuries. The firm’s strategy includes short-dated put options, equity buybacks, and active treasury management to optimize Bitcoin exposure, despite entering a crowded market dominated by early adopters like Strategy, which has accumulated over 607,770 BTC valued at $72 billion [1].

The firm disclosed it holds 3,183 Bitcoin, purchased at an average price of $117,697 per coin, reflecting a bold move to lock in exposure at peak prices. To reduce costs, Volcon has sold put options with strike prices of $115,000, $116,000, and $117,000, generating premium income while hedging against potential dips. This approach mirrors hedge fund tactics, aiming to lower the effective cost of future Bitcoin purchases. Concurrently, the company announced a $100 million share repurchase program over two years, designed to tighten its float and amplify Bitcoin-per-share metrics, reinforcing its focus on institutional-grade financial engineering [1].

Volcon’s rebranding and Bitcoin-first strategy position it as a late entrant in a competitive arena. Unlike Strategy, which began accumulating Bitcoin at sub-$10,000 prices in 2020, Volcon’s entry coincides with a market where public companies collectively hold over 3% of all mined Bitcoin. Strategy’s stock has surged 3,500% since 2020, outperforming Bitcoin’s 1,100% rally, demonstrating the potential for crypto-backed equities to deliver outsized returns. Volcon, however, faces steeper challenges, including higher entry costs and limited margin for error in a volatile market [1].

Co-CEO Ryan Lane emphasized the firm’s intent to leverage its team’s hedge fund experience to refine its Bitcoin acquisition strategy. “As a continuous aggregator of BTC, we will implement creative ways to lower the effective purchase price of BTC,” he stated, highlighting the company’s focus on efficiency and cost optimization. This approach aims to balance the risks of a late-market entry by combining derivative strategies with capital allocation discipline [1].

The broader implications of Volcon’s strategy lie in its potential to reshape corporate treasury management in the crypto space. By tightening its equity float and deploying put options, the firm is signaling confidence in Bitcoin’s long-term value while mitigating short-term volatility. However, success hinges on two critical factors: the sustained appreciation of Bitcoin to justify its high entry price and the effectiveness of its financial engineering in outperforming dilution risks. Strategy’s dominance underscores the steep competition, but Volcon’s innovative tactics may carve a niche in a market increasingly accepting of digital assets as a core capital allocation tool [1].

Source: [1] [title1Volcon doubles down on Bitcoin at ATHs, trims float] [url1https://crypto.news/volcon-doubles-down-on-bitcoin-at-aths-trims-float/]