Volcon Acquires 3,183.37 Bitcoin for $375M, Boosts Share Repurchase Program

Volcon has acquired 3,183.37 Bitcoin for $375M, with an average purchase price of $117,697 per BTC. The company has also sold short-term put contracts for additional BTC at lower prices while collecting premium. Volcon's board has authorized a $100M share repurchase program to support NAV per share and add BTC per share at lower prices.

Volcon, Inc. (NASDAQ: VLCN) has announced a significant strategic move in its cryptocurrency holdings, acquiring 3,183.37 Bitcoin (BTC) for approximately $375 million. The average purchase price per BTC was $117,697, reflecting a robust commitment to Bitcoin as a long-term store of value [1].

The company, now operating under the name Empery Digital, has also sold various short-term put contracts that could enable it to acquire additional BTC at strike prices of $115,000, $116,000, and $117,000, while collecting option premiums to reduce its overall BTC acquisition costs [1].

Volcon's Co-CEO Ryan Lane emphasized the company's conviction in Bitcoin, stating, "Our treasury strategy reflects our belief in Bitcoin as a durable, long-term store of value and a powerful treasury reserve asset. As a continuous aggregator of BTC, we will leverage our team’s decades of hedge fund experience to implement creative ways to lower the effective purchase price of BTC as we look to offer investors the most efficient, least dilutive, and lowest-cost means of gaining exposure to Bitcoin through the public equity market treasury structure" [1].

In addition to its Bitcoin acquisitions, Volcon's board of directors has authorized an increase in the current stock repurchase program. The company is now authorized to repurchase up to $100 million of its outstanding shares of common stock over the next 24 months. This program aims to support the company's net asset value (NAV) per share and potentially add BTC per share at share prices below NAV [1].

The repurchases may occur through open market transactions, private negotiations, or other means in accordance with federal securities laws. The timing, quantity, and value of shares to be repurchased will be determined by management based on market conditions, stock price, and other factors, with the board reviewing the program periodically [1].

Volcon's strategic move reflects a strong commitment to Bitcoin and a proactive approach to managing its treasury. The company's forward-looking statements caution investors not to place considerable reliance on these statements, as they are subject to risks and uncertainties, including the volatile nature of Bitcoin's price and market conditions [1].

References:
[1] https://www.stocktitan.net/news/VLCN/volcon-initiates-strategic-bitcoin-treasury-program-and-expands-0ah1iesxtax0.html
[2] https://www.investing.com/news/stock-market-news/volcon-stock-surges-after-firm-acquires-over-3000-bitcoin-93CH-4153404
[3] https://www.theglobeandmail.com/investing/markets/markets-news/Business%20Wire/33645018/volcon-initiates-strategic-bitcoin-treasury-program-and-expands-share-repurchase-authorization-to-100-million/