KULR Technology Group has made a significant move in the cryptocurrency space by launching its Bitcoin treasury. The company acquired 217.18 BTC for around $21 million, with an average purchase price of $96,556.53 per Bitcoin.
With total assets of nearly $11 million in 2023, KULR’s Bitcoin treasury now stands at roughly double that amount. This acquisition marks the beginning of a series of planned purchases as part of the company’s initiative to allocate up to 90% of its surplus cash reserves into Bitcoin for the long term.
To facilitate its Bitcoin investment strategy, KULR has partnered with Coinbase Prime. This collaboration will provide custody solutions, support for USD Coin (USDC), and self-custodial wallet services to ensure the security and flexibility of KULR’s crypto holdings.
The move by KULR comes amidst a trend of publicly traded companies increasing their Bitcoin holdings. MicroStrategy’s acquisitions and subsequent stock price gains have sparked a fear of missing out (FOMO) among others in the market.
Hut 8 has announced a plan to add $500 million worth of BTC to its reserves, while Marathon Digital recently added 15,574 BTC after issuing nearly $2 billion in convertible notes. Other companies, such as Rumble, Jiva Technologies, and Jetking Infotrain, have also joined the trend by investing excess cash into Bitcoin.
The primary reasons behind institutional Bitcoin purchases are to hedge against inflation and add value to their companies. As more companies enter the space, the adoption of Bitcoin as a treasury asset is expected to continue growing.
Overall, KULR’s entry into the Bitcoin market signals a broader shift towards digital asset adoption among traditional companies. With the support of Coinbase Prime and a strategic investment plan, KULR is well-positioned to navigate the evolving landscape of digital finance.