Investor Buys $500M in Bitcoin as Electric Scooter Maker’s Stock Soars
May 23 (Bloomberg) — Electric scooter maker Volcon reported a significant stock price increase following news of a major investment in Bitcoin.
Key Details
- The company raised $500 million through a private placement.
- Investors plan to use 95% of the funds to purchase Bitcoin, establishing a treasury.
- Volcon’s common stock price jumped nearly 135% on Thursday.
The announcement drew significant investor interest, with 50,142,851 shares sold at $10 each as part of the financing. This move contributes to a growing trend of large-cap corporations allocating significant treasury assets to Bitcoin.
Volcon Co-CEO John Kim described the decision as a strategic move in an “era of accelerating monetary debasement,” prioritizing shareholder protection and alignment with a digital future.
Financially struggling, Volcon reported losses of over $45 million in 2024 and saw its stock drop more than 35% this year. The Bitcoin investment aims to potentially boost its sagging stock performance.
Volcon joins a list of companies initially led by Michael Saylor’s MicroStrategy, which began buying Bitcoin in 2020 and now holds more than $72 billion worth of the cryptocurrency. The trend has expanded significantly since then.
Corporate Bitcoin Holdings Context
According to data provider bitocoin-treasuries.net, more than 140 companies have accumulated Bitcoin, collectively holding nearly $102.2 billion. Notably, MicroStrategy continues to dominate this space, accounting for more than two-thirds of these holdings.
Other companies have recently shifted towards diversifying, such as gambling marketing firm SharpLink and DeFi Development Corp. exploring Ethereum and Solana treasuries respectively.
The $500 million placement has been led by Empery Asset Management, with participation from FalconX, Pantera, Borderless, RK Capital, and Relayer Capital. The offering is expected to close around July 21.
About Volcon
Volcon designs, develops and sells electric off-road powersport vehicles. Its product lineup includes the Brat, a motorcycle-style vehicle for urban use, and the Grunt e-bike.
CoinGecko data shows Bitcoin recently trading around $120,200, having climbed approximately 3% in the previous week.
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