Volcon Inc., recently rebranded as Empery Digital (NASDAQ: VLCN), has unveiled a $375 million Bitcoin allocation, acquiring 3,183 BTC at an average price of $117,697 per coin. The electric vehicle manufacturer formalized its Bitcoin treasury strategy on July 17, positioning BTC as a core reserve asset.
The company employs an active management approach, selling short-term put options with strike prices at $115,000, $116,000, and $117,000. This strategy generates premium income while enabling potential accumulation of additional BTC at lower prices during market dips. Co-CEO Ryan Lane emphasized leveraging decades of hedge fund experience to optimize Bitcoin acquisition costs.
Concurrently, Empery announced a $100 million share buyback program over two years to tighten its float and amplify Bitcoin-per-share metrics. This move comes despite entering the corporate Bitcoin arena near all-time highs, contrasting with early adopters like MicroStrategy that accumulated at sub-$10,000 prices. Public companies now hold over 3% of Bitcoin's total supply, with MicroStrategy alone controlling 607,770 BTC worth approximately $72 billion.
The strategy faces challenges including Bitcoin's volatility, evolving regulations, accounting complexities requiring impairment recognition during price declines, and security concerns. Empery's late entry at elevated prices necessitates outperforming early movers through financial engineering and active treasury management.