Volcon Is Pivoting to a Bitcoin Treasury Model. Should You Buy VLCN Stock Here?
Volcon (VLCN) shares more than quadrupled on Thursday after the electric vehicle (EV) company joined a fast-growing list of businesses that have made Bitcoin (BTCUSD) their primary treasury reserve asset.
The Nasdaq-listed firm has raised over $500 million from a consortium of accredited investors led by Empery Asset Management, at least 95% of which will be used to load up on BTC.
Following today’s rally, Volcon stock, at one point, was up a staggering 900% versus its year-to-date low set in late May.
Why Did Volcon Stock Skyrocket on the BTC News?
VLCN shares are flying high this morning because adopting Bitcoin as the treasury reserve asset will help it tap into the long-term upside of the digital asset.
Over time, this strategy will likely help attract crypto-savvy investors, boost brand visibility, and diversify the company’s balance sheet beyond traditional fiat currencies.
For a small-cap electric vehicle firm, it’s a “high-risk, high-reward” play that could significantly improve shareholder value, if BTC continues to outperform over the longer term.
More importantly, investors are cheering Volcon stock today because a similar Bitcoin strategy has delivered explosive returns to MicroStrategy (MSTR) shareholders over the past several years.
VLCN Shares Are Not Particularly Attractive to Own
While the BTC pivot does seem exciting, caution is warranted in buying Volcon shares as the EV company’s financials are beyond disappointing.
In its latest reported quarter, VLCN lost $2.46 million as the revenue tanked roughly 30% to some $700,000 on a year-over-year basis.
Additionally, higher tariffs are a meaningful threat as they could further increase costs for Volcon that’s already burning through cash at an alarming pace.
Note that VLCN stock does not currently receive coverage from major Wall Street analysts – which typically is a huge red flag for serious, long-term investors as well.
Why? Because it often signals limited institutional interest, low liquidity, and unusually high risk, which raises concerns about transparency, credibility, and the firm’s ability to sustainably attract capital support.
Therefore, despite the Bitcoin strategy announced today, Volcon remains a high-risk speculative bet for the second half of 2025.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.