KULR Technology Group has launched a Bitcoin treasury strategy with a $21 million investment.
KULR Technology Group, an energy tech company, announced its first Bitcoin acquisition as part of a new treasury strategy aimed at leveraging surplus cash. The company purchased 217.18 Bitcoin (BTC) for $21 million at an average price of $96,556 per BTC. This move, revealed on December 4, marks the initial phase of KULR’s long-term plan to allocate up to 90% of its surplus cash to Bitcoin.
Publicly traded KULR invests $21M in #Bitcoin for its treasury. pic.twitter.com/D0zrylaqCm
— TFTC (@TFTC21) December 26, 2024
Following the announcement, KULR’s stock surged by 30%, closing at $4.55 as of Thursday. Investor confidence appears to have been further bolstered by the company’s recent compliance with NYSE American stockholder equity norms, achieved on December 19. Over the past five trading sessions, KULR’s stock has risen by over 90%, reflecting growing market optimism.
KULR’s Bitcoin treasury strategy aligns with a broader trend among corporations integrating Bitcoin into their balance sheets as a long-term asset. Coinbase’s Prime platform has been selected to provide custody, USDC, and self-custodial wallet services for KULR’s Bitcoin holdings. This strategic partnership ensures secure management of the company’s Bitcoin.
“By leveraging surplus cash for Bitcoin, we aim to enhance long-term value for our shareholders and position ourselves strategically within the evolving financial landscape,” KULR’s management stated in a press release.
KULR joins a growing list of companies adopting Bitcoin as a treasury asset. Marathon Digital Holdings currently holds 44,394 BTC worth approximately $4.2 billion, while Semler Scientific has added 2,084 BTC to its reserves. Other notable entrants include Quantum BioPharma, which recently purchased $1 million in Bitcoin, and Canadian firm Matador Technologies, which acquired $4.5 million worth of Bitcoin earlier this month. Japanese investment firm Metaplanet also recently acquired 620 BTC, marking its largest-ever purchase.
KULR’s move signifies an increasing adoption of Bitcoin as a treasury strategy among corporations, with MicroStrategy serving as a pioneer in this domain. By leveraging surplus cash for Bitcoin investments, KULR aims to position itself strategically amid a shifting financial landscape. The company’s ongoing Bitcoin acquisitions are expected to continue, further aligning its financial strategies with the evolving Bitcoin market.
