KULR Technology Group Adds Bitcoin to Corporate Treasury with $21M Purchase
2024-12-29
KULR Technology Group, a publicly traded energy company, has made a bold move into Bitcoin (BTC), acquiring 217.18 BTC for $21 million at an average price of $96,556 per Bitcoin. This purchase marks the start of the company’s initiative to allocate up to 90% of its surplus cash reserves into Bitcoin as a long-term investment strategy.
Read more about Bitcoin (BTC):
Bitcoin Price (BTC), Market Cap, Price Today & Chart History
BTC to USD: Convert Bitcoin to US Dollar
A Significant Investment
KULR’s Bitcoin acquisition is notable for its size, representing nearly double the company’s total reported assets of $11 million in 2023. The investment underscores the growing trend of corporate Bitcoin adoption as a means of diversifying treasuries and potentially hedging against inflation.
Strategic Partnership with Coinbase Prime
To ensure security and flexibility for its Bitcoin holdings, KULR has partnered with Coinbase Prime. The partnership provides KULR with custody solutions, USD Coin (USDC) support, and self-custodial wallet services, demonstrating the company’s commitment to robust risk management.
Corporate FOMO and the Rise of Bitcoin Treasuries
KULR’s move follows a growing trend among publicly traded companies seeking to leverage Bitcoin’s potential. Notable examples include:
- MicroStrategy: Pioneered corporate Bitcoin buying, influencing others to follow suit.
- Hut 8 Mining: Announced a $500 million plan to expand its Bitcoin reserves.
- Marathon Digital: Recently acquired 15,574 BTC through $2 billion in convertible notes.
- Rumble: Invested $20 million of excess cash into Bitcoin.
- Jetking Infotrain: Became India’s first publicly traded company to buy Bitcoin, allocating 26% of its market size.
The growing adoption is driven by Bitcoin’s perceived value as an inflation hedge and its potential to enhance corporate financial strength.
Conclusion
KULR’s Bitcoin acquisition signals a growing confidence in BTC as a strategic asset for corporate treasuries. As more companies follow suit, Bitcoin’s role in institutional portfolios continues to expand, solidifying its status as a key player in the global financial ecosystem
Disclaimer: The content of this article does not constitute financial or investment advice.
