KULR Expands Bitcoin Holdings to 510 BTC, Reports 127% BTC Yield

Rhea-AI Summary

KULR Technology Group has expanded its Bitcoin Treasury with an additional $8 million investment, bringing total bitcoin acquisitions to $50 million. The company now holds 510 BTC, purchased at a weighted average price of $101,695 per bitcoin, including fees and expenses.

This expansion aligns with KULR's Bitcoin Treasury Strategy announced on December 4, 2024, which committed up to 90% of surplus cash reserves to bitcoin holdings. The company reports a 127% BTC Yield year to date, achieved through a combination of surplus cash and its At-The-Market (ATM) equity program.

KULR introduces 'BTC Yield' as a key performance indicator, calculated as the percentage change in the ratio of bitcoin holdings to Assumed Fully Diluted Shares Outstanding. The company emphasizes that BTC Yield should not be interpreted as a measure of operating performance, financial return, or liquidity.

Positive

• Accumulated significant bitcoin holdings of 510 BTC
• Achieved 127% BTC Yield year to date
• Strategic allocation of up to 90% of surplus cash to bitcoin

Negative

• Using ATM equity program for bitcoin purchases may lead to shareholder dilution
• High exposure to volatile cryptocurrency market
• BTC average purchase price of $101,695 represents significant capital commitment

Insights

Financial Analyst

The recent $8 million bitcoin acquisition, bringing KULR's total BTC holdings to 510, represents a significant strategic pivot for a company traditionally focused on energy management platforms. The weighted average purchase price of $101,695 per bitcoin and the reported 127% BTC Yield demonstrate aggressive positioning in the cryptocurrency space.

The commitment to allocate up to 90% of surplus cash reserves to bitcoin exposes KULR to substantial cryptocurrency market volatility. While the 127% BTC Yield appears impressive, it's important to understand this metric doesn't follow traditional financial measurements and excludes critical factors like operational costs and liabilities. The company's use of the ATM equity program to fund purchases effectively dilutes shareholder value to acquire speculative assets.

In simple terms, imagine a company selling part of its ownership (shares) to buy lottery tickets. While those tickets might increase in value, they also represent a significant risk to the company's financial stability. The strategy marks a dramatic shift from KULR's core business model and introduces substantial risk factors that traditional energy technology investors may not have signed up for.

Cryptocurrency Expert

KULR's bitcoin acquisition strategy mirrors the treasury diversification trend seen among public companies, but with a notably aggressive approach. The average entry price of $101,695 per BTC positions KULR's holdings at the higher end of the historical price range, indicating significant confidence in bitcoin's long-term appreciation potential.

The novel BTC Yield metric, while interesting, potentially masks the true risk-adjusted returns by not accounting for the cost of capital or opportunity costs. The use of an ATM program to fund bitcoin purchases effectively creates a leveraged crypto position through equity markets - a sophisticated but risky approach that few public companies have attempted.

For the average investor, this is like using a credit card to buy gold - while the underlying asset might appreciate, the financing costs and risks need careful consideration. The 90% surplus cash allocation target suggests a particularly bullish stance on bitcoin, but also raises questions about working capital management and operational flexibility.

HOUSTON, Jan. 21, 2025 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or "KULR"), a leader in advanced energy management platforms, today announced it has increased its bitcoin purchases for its Bitcoin Treasury by an additional $8 million to reach a total of $50 million in bitcoin acquisitions. The additional purchases were made at a weighted average price of $101,695 per bitcoin, inclusive of fees and expenses. The Company now holds 510 BTC.

This strategic move aligns with KULR’s Bitcoin Treasury Strategy announced on December 4, 2024, wherein the Company committed up to 90% of its surplus cash reserves to be held in bitcoin.

BTC Yield as a Key Performance Indicator

Year to date, KULR has achieved a BTC Yield of 127%, leveraging a combination of surplus cash and its At-The-Market (ATM) equity program to fund purchases.

KULR uses "BTC Yield" as a key performance indicator (KPI) for its Bitcoin Treasury strategy. BTC Yield is calculated as the percentage change period-to-period in the ratio of the Company’s bitcoin holdings to its Assumed Fully Diluted Shares Outstanding. This KPI helps assess the effectiveness of KULR’s bitcoin acquisition strategy in a manner KULR believes drives shareholder value.

Important Considerations Regarding BTC Yield

BTC Yield is intended to provide insights into KULR’s bitcoin acquisition strategy but should not be interpreted as a measure of operating performance, financial return, or liquidity. It is not equivalent to traditional yield metrics, nor does it account for the Company’s liabilities or broader financial position.

The trading price of KULR’s common stock is influenced by multiple factors beyond bitcoin holdings, and BTC Yield does not predict or reflect the stock's market value. Investors should consider this metric as a supplementary tool and refer to the Company’s financial statements and SEC filings for additional information about the Company’s financial position.

KULR remains committed to its strategic goals of advancing shareholder value while adhering to disciplined financial management.

For additional details, please visit www.kulrtechnology.com.

No Offer or Solicitation
This press release does not and shall not constitute an offer to sell or a solicitation of an offer to buy any securities of KULR Technology Group Inc., nor shall there be any offer, solicitation or sale of such securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About KULR Technology Group Inc.
KULR Technology Group Inc. (NYSE American: KULR) delivers cutting edge energy storage solutions for space, aerospace, and defense by leveraging a foundation of in-house battery design expertise, comprehensive cell and battery testing suite, and battery fabrication and production capabilities. The Company’s holistic offering allows delivery of commercial-off-the-shelf and custom next generation energy storage systems in rapid timelines for a fraction of the cost compared to traditional programs. On December 4, 2024, KULR announced that its Board of Directors has agreed to include bitcoin as a primary asset in its treasury program and committed to allocating up to 90% of its surplus cash to the acquisition of bitcoin. For more information, please visit www.kulrtechnology.com.

Safe Harbor Statement
This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied 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, 2024, as may be amended or supplemented by other reports we file with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding 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. All forecasts are provided by management in this release are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are entirely based on management’s best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included 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 x 847
Email: ir@kulrtechnology.com

FAQ

How many bitcoins does KULR Technology Group currently hold?

KULR Technology Group currently holds 510 BTC in its Bitcoin Treasury.

What is KULR's total investment in bitcoin as of January 2025?

KULR has invested a total of $50 million in bitcoin acquisitions, with the most recent addition being $8 million.

What is KULR's BTC Yield performance in 2025?

KULR has achieved a BTC Yield of 127% year to date in 2025.

What percentage of surplus cash has KULR committed to bitcoin?

According to KULR's Bitcoin Treasury Strategy announced on December 4, 2024, the company has committed up to 90% of its surplus cash reserves to be held in bitcoin.

What was the average purchase price of KULR's bitcoin acquisitions?

KULR's additional bitcoin purchases were made at a weighted average price of $101,695 per bitcoin, including fees and expenses.