Key Points
- KULR Technology Group acquired 78.66 Bitcoin (BTC) for $8 million, initiating their 2025 Bitcoin Treasury Strategy.
- The company now holds a total of 510 BTC, having spent $50 million on acquisitions.
US-based KULR Technology Group has started 2025 with a significant purchase in the Bitcoin market.
The advanced energy management company bought approximately 78.66 BTC for $8 million, at an average price of $101,695 per coin.
Aligning with Bitcoin Treasury Strategy
The acquisition aligns with KULR’s Bitcoin Treasury Strategy, which was announced on December 4, 2024.
This strategy involves committing up to 90% of the company’s surplus cash reserves to Bitcoin.
In the same month, KULR began implementing this strategy by purchasing 217.18 BTC for approximately $21 million at an average price of $96,556.53 per coin.
They selected Coinbase, a US-based exchange, as the official custody partner to hold the Bitcoins.
So far, KULR has spent a total of $50 million to acquire around 510 Bitcoin.
The company announced a 127% Bitcoin yield since adding the leading crypto asset to its treasuries.
Measuring BTC Yield
KULR uses “BTC Yield” as a performance indicator to evaluate the effectiveness of its Bitcoin acquisition strategy.
This yield is calculated as the percentage change period-to-period in the ratio of the company’s Bitcoin holdings to its assumed fully diluted shares outstanding.
This metric offers shareholders a transparent view of the company’s strategic asset allocation.
It’s important to note that BTC Yield is not a measure of operating performance, financial return, or liquidity and should be considered alongside traditional financial metrics.
Corporate Bitcoin Investments
KULR’s strategic move is part of a broader trend of corporations adding Bitcoin to their balance sheets.
MicroStrategy, a business intelligence firm, has been a prominent player in this space.
MicroStrategy recently announced that it had acquired additional bitcoin worth approximately $1.1 billion.
The firm used the proceeds of its share sale between January 13 and 20 to purchase 11,000 BTC.
MicroStrategy remains the largest corporate holder of bitcoin, with a total of around 461,000 BTC valued at an estimated $47 billion.
This is not the company’s first purchase of the year.
According to a Form 8-K filed with the US Securities and Exchange Commission (SEC) on January 6, 2025, MicroStrategy spent $101 million in late December to buy 1,070 BTC.
At that time, its bitcoin stash stood at 447,470 BTC.
This week also saw Rumble Inc., a video-sharing platform, announce its entry into the crypto market with a significant Bitcoin purchase.
While the exact figures were not disclosed, the move signifies Rumble’s confidence in Bitcoin as a strategic asset.
Metaplanet, a Japanese-based investment firm, also made headlines in 2024 by adopting Bitcoin as a strategic reserve.
The company executed a series of purchases throughout the year, underscoring its commitment to integrating digital assets into its investment portfolio.
