Key Points
- KULR Technology Group bolsters its Bitcoin treasury with an additional $10 million purchase.
- The company’s cumulative Bitcoin holdings now amount to approximately $60 million, equating to 610.3 BTC.
KULR Technology Group, Inc., a leader in advanced energy management platforms, has expanded its Bitcoin treasury with a recent $10 million purchase. The company disclosed this purchase on February 11, stating that the Bitcoin was bought at a weighted average price of $103,905 per unit, including all fees and expenses.
The latest acquisition brings KULR Technology’s total Bitcoin holdings to 610.3 BTC, with an approximate worth of $60 million.
Strategic Move Towards Crypto
The decision to increase its Bitcoin holdings signifies KULR’s growing commitment to the cryptocurrency sphere. On December 4, 2024, the company’s Board of Directors formally recognized Bitcoin as a primary treasury asset. This significant shift included a plan to allocate up to 90% of surplus cash towards acquiring the leading cryptocurrency.
In January, KULR’s CEO and co-founder, Michael Mo, acknowledged the mounting Bitcoin adoption, stating that Bitcoin is no longer just a niche investment as institutional adoption is booming.
KULR’s Bitcoin treasury strategy has yielded notable results. The company reported a year-to-date BTC yield of 167.3%, a key performance indicator measuring the percentage change in its Bitcoin holdings relative to its fully diluted shares outstanding. The acquisitions were financed through surplus cash and KULR’s at-the-market (ATM) equity program, demonstrating the company’s ability to efficiently deploy capital into its digital asset investments.
Increasing Corporate Bitcoin Adoption
KULR’s investment mirrors the broader trend of corporate interest in Bitcoin, as companies seek to diversify their treasury portfolios and hedge against traditional market fluctuations. Several big companies have started accumulating BTC after spot Bitcoin exchange-traded funds (ETFs) gained regulatory approval from the US Securities and Exchange Commission (SEC) in January 2024.
Data from HODL15Capital reveals that 20 companies increased their Bitcoin treasury holdings just this past week. As of February 10, the top 70 companies collectively hold 635,657 BTC, with MicroStrategy and Marathon Digital leading the pack. The role of digital assets in corporate finance appears to expand further as more corporations join the movement.
In another development, Tokyo-listed mobile game studio Gumi Inc. announced plans to acquire Bitcoin worth 1 billion Japanese yen (around $6.58 million). The company’s planned purchase period spans from February to May of this year.
Bitcoin continues to hold steady, currently trading around $97,250 without significant price fluctuations over the past 24 hours. The broader cryptocurrency market has seen modest growth, with a 0.20% increase in market capitalization, now standing at $3.19 trillion.
