Bitcoin Treasury Strategy in Public Equities: Volcon's Dual Approach to Capital Efficiency and Shareholder Value

The corporate world is undergoing a quiet revolution. For years, public companies have diversified their treasuries into gold, short-term bonds, or cash equivalents. Now, a new asset is vying for dominance: Bitcoin. Volcon, Inc.—recently rebranded as Empery Digital (NASDAQ: EMPD)—has emerged as a trailblazer in this space, deploying a dual strategy that combines Bitcoin aggregation with stock buybacks to maximize capital efficiency and shareholder value. The company's approach raises a compelling question: Can a public equity vehicle, paired with a Bitcoin treasury, create a new blueprint for value creation in the digital age?

The Mechanics of Volcon's Strategy

Volcon's pivot to a Bitcoin-first treasury model is both bold and methodical. In July 2025, the company raised $500 million through a private placement, led by Empery Asset Management, a firm with deep roots in hedge fund strategies. This capital was used to purchase 3,183.37 BTC at an average price of $117,697 per coin, with plans to allocate 95% of proceeds to Bitcoin. But the company didn't stop there. It also sold short-term put contracts at strike prices of $115,000 to $117,000, collecting premiums to offset future BTC purchases. This hedging approach mirrors the tactics of institutional investors in traditional markets, where options are used to manage downside risk while preserving capital.

The result? A capital-efficient model that leverages both equity and derivatives to accumulate Bitcoin at scale. By partnering with Gemini Trust, Volcon ensures secure custodial services and execution, adding a layer of institutional credibility to its treasury. Meanwhile, the appointment of seasoned executives like Ian Read (former Pfizer CEO) and Gemini's Rohan Chauhan to its board underscores a commitment to operational rigor.

Buybacks as a Complement to BTC Aggregation

Volcon's strategy isn't solely about Bitcoin. The company has authorized a $100 million stock repurchase program, a move that signals confidence in its net asset value (NAV) per share. Buybacks can stabilize a stock's price, reduce share dilution, and increase earnings per share (EPS)—all critical metrics for equity investors. By pairing buybacks with Bitcoin accumulation, Volcon is creating a dual lever to drive shareholder value: higher BTC per share through asset purchases and a potentially lower P/E ratio through share repurchases.

This duality is rare in public markets. Most companies either focus on asset diversification or capital return, but Volcon is attempting both. The logic is sound: If Bitcoin continues its upward trajectory, the company's BTC holdings will appreciate, boosting NAV. Simultaneously, repurchasing undervalued shares (those trading below NAV) amplifies returns for remaining shareholders.

Risk and Reward in a Volatile Market

No strategy is without risk. Bitcoin's volatility—its defining feature—could work against Volcon if prices plummet. A sharp decline in BTC's value might erode the company's NAV, potentially dragging down its stock price. Additionally, the correlation between EMPD and Bitcoin could attract speculative investors while deterring more conservative ones. Regulatory uncertainty also looms: The SEC's stance on Bitcoin ETFs and corporate treasury strategies remains fluid, and a shift in policy could impact Volcon's long-term viability.

Yet, these risks are not insurmountable. Volcon's use of put options and its focus on low-cost aggregation mitigate some of the downside. Moreover, the company's rebranding to Empery Digital—positioning itself as a “digital-first” entity—reflects a strategic alignment with the macro trend of digital asset adoption. As more corporations explore Bitcoin as a reserve asset, Volcon's early-mover advantage could become a significant differentiator.

A New Paradigm for Public Equities?

Volcon's approach challenges conventional wisdom. For decades, the public equity market has been dominated by traditional asset classes. Now, a company is demonstrating how a Bitcoin treasury can coexist with—and enhance—a stock buyback program. This model isn't just about chasing digital trends; it's about redefining capital allocation in a world where digital assets are increasingly seen as a store of value.

For investors, the key question is whether Volcon can execute its vision. The company's track record in power sports and EVs is mixed, but its new leadership team and strategic partnerships with Gemini and Empery suggest a disciplined approach. The buyback program adds another layer of confidence, as it implies the management believes the stock is undervalued.

Investment Implications

Volcon's dual strategy is not for the faint of heart. The company's stock is inherently tied to Bitcoin's performance, which means it will experience sharp swings. However, for investors who believe in Bitcoin's long-term potential and are comfortable with volatility, EMPD offers a unique vehicle to gain exposure to the digital asset through a public equity structure. The buyback program adds a safety net, providing downside protection if Bitcoin underperforms.

A critical metric to watch is the company's BTC-per-share ratio. As Volcon continues to purchase Bitcoin and repurchase shares, this ratio should increase, driving intrinsic value higher. Investors should also monitor Bitcoin's price relative to Volcon's stock price. If EMPD trades at a significant discount to its NAV (BTC holdings plus cash reserves), the stock could present a compelling opportunity.

Conclusion

Volcon's Bitcoin treasury strategy is a masterclass in capital efficiency and shareholder value creation. By combining BTC aggregation with stock buybacks, the company is building a hybrid model that bridges the gap between public equities and digital assets. While risks remain, the strategy's ingenuity and execution thus far suggest a company that is thinking decades ahead of its peers. For investors willing to navigate the volatility, Volcon's approach could offer a glimpse into the future of corporate treasury management—and a profitable path to capitalize on it.