KULR Technology Acquires 217 Bitcoin for $21 Million and Partners with Coinbase Prime for Custody Services

The KULR Technology Group has bought 217.18 Bitcoin (BTC) for approx 21 million dollarswith an average price of $96,556.53 per BTC. This acquisition follows the company’s December 4 announcement of its Bitcoin treasury strategy, which outlined plans to allocate up to 90% of excess cash in BTC. The company has chosen the Coinbase Prime platform for custodial, USDC and self-custody wallet services. This purchase is the first of the ongoing BTC acquisitions that KULR plans to make in the future.

Positive

The strategic allocation of $21 million worth of Bitcoin ensures diversification of Treasury holdings

Partnering with established cryptocurrency platform Coinbase Prime for custody services

Clear implementation of the announced Bitcoin Treasury strategy

Negative

Significant cash deployment (90% of surplus) for volatile cryptocurrency assets

The high average purchase price of $96,556.53 per Bitcoin increases downside risk

Significant risk of cryptocurrency market volatility

Insights

KULRs 21 million dollars The acquisition of Bitcoin represents a significant shift in corporate treasury management 217.18 BTC at an average price of $96,556.53 per unit. This bold step, the allocation of up to 90% Converting excess cash into Bitcoin represents a high-risk, high-potential strategy that could have a significant impact on the company’s financial condition.

The timing of this purchase aligns with Bitcoin’s historical price levels, suggesting either strong belief in further appreciation or perhaps overexposure to cryptocurrency market volatility. This strategy mirrors MicroStrategy’s approach, but carries increased risk given KULR’s smaller market cap 818 million dollars. Partnering with Coinbase Prime provides institutional-grade security but brings with it counterparty risk considerations.

For investors, this represents a de facto transformation of KULR into a hybrid stock – part energy management company, part Bitcoin proxy. The stock’s performance will likely become increasingly correlated with Bitcoin price movements, potentially overshadowing core business fundamentals. This treasury transformation effectively turns KULR into a leveraged Bitcoin company that could amplify both profits and losses for shareholders.

The extent of this reallocation of financial resources requires careful consideration from a risk management perspective. Commit to investing 90% Excess cash in Bitcoin poses significant concentration risk and could impact operational flexibility. While Bitcoin offers potential appreciation, it also introduces significant volatility on the balance sheet.

The main risk factors include:

Liquidity reserves for operational needs
Threat from regulatory changes in cryptocurrencies
Possible mark-to-market losses affecting quarterly reports
Increased correlation with crypto market volatility

Think of it as transforming the company treasury from a stable bank account into a volatile investment portfolio. For a company in the energy management sector, this level of financial experimentation represents a significant departure from industry standards and could impact relationships with conservative business partners or institutional investors.

December 26, 2024 – 8:30 a.m

HOUSTON, Dec. 26, 2024 (GLOBE NEWSWIRE) — KULR Technology Group, Inc. (NYSE American: KULR) (the “Company” or “KULR”), a leading provider of advanced energy management platforms, today announced that it has completed the purchase of 217.18 Bitcoin (“BTC”) for approximately 21 million dollarsat an average price of $96,556.53 per BTC.

The purchase follows the company’s December 4 announcement of its Bitcoin treasury strategy, in which it announced the allocation of up to 90% of its excess cash in BTC. The 21 million dollars The BTC share purchased since the announcement is the first of ongoing purchases the company plans to make in the future. KULR selected Coinbases (NASDAQ: COIN) Prime platform to provide custodial, USDC and self-custody wallet services for its BTC.

For more information, see www.kulrtechnology.com.

About KULR Technology Group Inc.
KULR Technology Group Inc. (NYSE American: KULR) delivers state-of-the-art energy storage solutions for space, aerospace and defense by leveraging a foundation of internal battery design expertise, comprehensive cell and battery test suite, and battery manufacturing and production capabilities. The company’s holistic offering enables the delivery of next-generation commercial, off-the-shelf and custom energy storage systems in a short period of time and at a fraction of the cost compared to traditional programs. For more information, see www.kulrtechnology.com.

Safe Harbor Statement
This press release contains certain forward-looking statements that are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. Forward-looking statements in this press release are based on information available to us as of the date hereof. Our actual results may differ materially from those discussed in such forward-looking statements due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on April 12 or implied results, 2024, as may be amended or supplemented by other reports we file from time to time with the Securities and Exchange Commission. Forward-looking statements include statements about our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect.” “intend”, “may”, “should” and “would” or similar words. Any forecasts provided by management in this press release are based on information available at the time and management understands that internal forecasts and expectations may change over time. In addition, the projections are based entirely on management’s best estimate of our future financial performance in light of our current contracts, current backlog and discussions with new and existing customers regarding our products and services. We undertake no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.

Investor relations:
KULR Technology Group, Inc.
Phone: 858-866-8478×847
E-mail: [email protected]

FAQ

How much Bitcoin did KULR Technology Group buy in December 2024?

KULR Technology Group purchased 217.18 Bitcoin for approximately $21 million, at an average price of $96,556.53 per BTC.

What percentage of excess cash does KULR provide to Bitcoin?

KULR announced plans to allocate up to 90% of its excess cash to Bitcoin investments.

What platform does KULR use for Bitcoin custody services?

KULR has chosen Coinbase’s Prime platform to provide custody, USDC and self-custody wallet services for its Bitcoin holdings.

When did KULR announce its Bitcoin treasury strategy?

KULR announced its Bitcoin treasury strategy on December 4, 2024.

Is this KULR’s only planned Bitcoin purchase?

No, this is the first ongoing Bitcoin purchase that KULR plans to make in the future.

KULR Technology Acquires 217 Bitcoin for $21 Million and Partners with Coinbase Prime for Custody Services

ByAmelia Journalton

Insights

FAQ

How much Bitcoin did KULR Technology Group buy in December 2024?

What percentage of excess cash does KULR provide to Bitcoin?

What platform does KULR use for Bitcoin custody services?

When did KULR announce its Bitcoin treasury strategy?

Is this KULR’s only planned Bitcoin purchase?

By Amelia Journalton

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