Volcon Epowersports, a U.S.-based electric off-road powersports firm, has shifted its reserve strategy to welcome cryptocurrency investment. According to a recent press release, it has accepted bitcoin (BTC), the world’s leading crypto asset, as its reserve asset and a hedge against future cases of fiat inflation.
Before its latest business shopping, Volcon revealed that it has entered into securities purchase agreements with confident institutional and accredited investors in a private placement for the purchase and sale of over 50 million shares of common stock for $10.00 per share.
3,183 BTC Holdings
Volcon has spent about $375 million to purchase 3,183.37 BTC. It has also attained an average purchase price of $117,697 per BTC. To further boost its reserve, the firm has sold some of its short-term investment products, stacking up the funds for future BTC acquisitions. It has also planned to purchase the leading crypto between the $115,000 and $117,000 price range to control its average purchase and entry price.
Meanwhile, to boost its presence in the crypto ecosystem, the company entered into a Strategic Digital Assets Services Agreement with Gemini Nustar LLC, an affiliate of Gemini Trust Company. It has also appointed Ian Read and several other directors from Gemini to join the company’s executive board before the next board meeting.
$100M Repurchase Program
Furthermore, the firm’s Board has increased its stock repurchase program to $100 million over the next 24 months. This would allow Volcon the flexibility to support the Net Asset Value (NAV) per share and boost investors’ BTC per share at share prices below NAV.
Commenting on the firm’s establishment of a strategic BTC reserve, Ryan Lane, Co-CEO of Volcon, said,
“Our treasury strategy reflects our conviction in Bitcoin as a durable, long-term store of value and a powerful treasury reserve asset. As a continuous aggregator of BTC, 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.”
Meanwhile, according to a recent filing with the U.S. Securities and Exchange Commission, Volcon plans to change its name to Empery Digital, Inc. and change its ticker to EMPD.
