Key Takeaways
KULR Technology Group has implemented a new treasury strategy by purchasing 217.18 Bitcoin for $21 million.
The announcement of the Bitcoin purchase led to a 30% increase in the company’s stock price.
KULR Technology entered the Bitcoin market with the acquisition of 217.18 BTC at an average price of $96,556 per Bitcoin.
This purchase signifies the first step in the energy tech company’s recently launched Bitcoin Treasury strategy, which was announced on December 4. The strategy aims to allocate up to 90% of the company’s surplus cash into Bitcoin as a long-term asset.
Coinbase’s Prime platform will provide custody, USDC, and self-custodial wallet services for KULR Technology’s Bitcoin holdings.
Following the announcement, KULR’s stock price surged by 30%, reaching $4.55 at the time of press.
KULR’s decision reflects the growing trend of companies incorporating Bitcoin into their balance sheets.
Marathon Digital Holdings currently holds 44,394 BTC, valued at $4.2 billion, while Semler Scientific has added 2,084 BTC to its holdings.
In addition to KULR, other companies have also made significant Bitcoin purchases. Quantum BioPharma recently announced a $1 million acquisition of Bitcoin and other digital assets, and Canadian firm Matador Technologies disclosed a $4.5 million Bitcoin purchase on December 23.
Japanese investment firm Metaplanet also joined the trend by recently acquiring 620 BTC, which marks its largest-ever purchase.
By utilizing surplus cash to invest in Bitcoin, KULR is following the footsteps of companies like MicroStrategy, whose Bitcoin investments have become the benchmark for treasury strategies.