KULR Increases Bitcoin Purchases to $42 Million, Reports 93.7% BTC Yield
KULR Technology Group, Inc. (NYSE American: KULR), a leader in advanced energy management platforms, has taken another significant step in its Bitcoin Treasury strategy. On January 6, 2025, the company announced an additional $21 million investment in Bitcoin, bringing its total Bitcoin purchases to $42 million. This move solidifies KULR’s commitment to integrating Bitcoin into its corporate treasury and aligns with its long-term financial strategy.
Details of the Latest Purchase
The additional $21 million acquisition was made at a weighted average price of $98,393.58 per Bitcoin, including fees and expenses. With this latest purchase, KULR now holds a total of 430.6 BTC, valued at approximately $42 million based on current market prices.
KULR’s Bitcoin holdings now represent approximately 18% of the company’s market capitalization, emphasizing the significant role Bitcoin plays in its financial strategy.
This expansion follows the company’s December 2024 announcement of its Bitcoin Treasury Strategy, in which KULR committed to allocating up to 90% of its surplus cash reserves to Bitcoin. By leveraging Bitcoin’s unique properties, the company aims to protect its assets against inflation and macroeconomic instability.
Introducing BTC Yield as a Key Performance Indicator
KULR has introduced “BTC Yield” as a new key performance indicator (KPI) to measure the success of its Bitcoin Treasury strategy. BTC Yield reflects the percentage increase in Bitcoin holdings per share over time, offering investors a transparent view of how the company’s Bitcoin acquisitions enhance shareholder value.
How BTC Yield is Calculated
BTC Yield is calculated as the period-to-period percentage change in the ratio of Bitcoin holdings to the company’s Assumed Fully Diluted Shares Outstanding. From December 2024 to January 2025, KULR achieved an impressive BTC Yield of 93.7%, funded through surplus cash and its At-The-Market (ATM) equity program.
Key Considerations for BTC Yield
While BTC Yield provides valuable insights into KULR’s Bitcoin acquisition strategy, it should not be interpreted as a measure of operating performance, financial return, or liquidity. Instead, it serves as a supplementary tool to evaluate the accretive impact of Bitcoin on shareholder value. Investors are encouraged to refer to the company’s financial statements and SEC filings for a comprehensive understanding of its financial position.
Strategic Rationale for Bitcoin Investments
Michael Mo, CEO of KULR, explained the rationale behind the company’s aggressive Bitcoin acquisitions:
“The distinct characteristics of BTC entail prospects for further serious interest and would stand guard against developing current events such as geopolitics, inflation, and other macro-political events impacting the developed economies.”
Bitcoin’s capped supply of 21 million coins makes it an attractive asset for hedging against inflation and fostering financial resilience. For KULR, Bitcoin holdings support operational growth, long-term planning, and shareholder value creation.
Broader Institutional Adoption
KULR’s Bitcoin Treasury strategy mirrors a growing trend among major corporations. Companies like MicroStrategy and Tesla have embraced Bitcoin as a core component of their financial strategies. Recent developments in the broader market, such as Tether’s addition of 8,404.5 BTC to its reserves, further underscore the increasing institutional adoption of Bitcoin.
Looking Ahead
KULR’s bold approach to Bitcoin integration highlights its belief in the long-term potential of the asset. With 430.6 BTC now in its treasury and a strategic focus on maximizing BTC Yield, KULR is positioning itself as a forward-thinking leader in the intersection of energy management and digital assets.
As more companies explore Bitcoin as a financial strategy, KULR’s commitment to innovation and shareholder value sets a compelling example for others to follow.
For more information on KULR’s Bitcoin Treasury strategy, visit www.kulrtechnology.com.