KULR Expands Bitcoin Holdings to 610 BTC, Reports 167% BTC Yield

Rhea-AI Summary

KULR Technology Group has expanded its Bitcoin Treasury with an additional $10 million investment, bringing total bitcoin acquisitions to $60 million. The company now holds 610.3 BTC, purchased at a weighted average price of $103,905 per bitcoin, including fees.

This expansion aligns with KULR's Bitcoin Treasury Strategy announced in December 2024, which committed up to 90% of surplus cash reserves to bitcoin holdings. The company reports a BTC Yield of 167.3% 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

• Significant bitcoin holdings of 610.3 BTC, representing $60 million in acquisitions
• 167.3% BTC Yield achieved year to date
• Strategic allocation of up to 90% of surplus cash to bitcoin

Negative

• Use of ATM equity program for bitcoin purchases may lead to shareholder dilution
• High exposure to volatile cryptocurrency market with 90% cash allocation to bitcoin
• Average purchase price of $103,905 per bitcoin indicates significant investment at peak prices

Insights

Financial Markets Analyst

KULR's dramatic expansion of its Bitcoin Treasury marks a significant pivot in corporate strategy that warrants careful analysis. The investment of $60 million in bitcoin represents an aggressive position that fundamentally alters the company's risk profile and balance sheet composition. Several critical aspects deserve attention:

Treasury Management Innovation: The introduction of 'BTC Yield' as a performance metric is notable, but potentially misleading. While the reported 167.3% yield appears impressive, it's important to understand this metric incorporates share dilution through the ATM program, effectively masking the true cost to existing shareholders.

Risk Considerations: Allocating up to 90% of surplus cash to bitcoin exposes KULR to significant cryptocurrency market volatility. This strategy, while potentially lucrative in a bull market, could severely impact operational flexibility and financial stability during market downturns. The average purchase price of $103,905 per bitcoin suggests entries at relatively high price points, increasing downside risk.

Financial Impact: The use of the ATM equity program to fund bitcoin purchases indicates a complex financial strategy that balances potential cryptocurrency gains against shareholder dilution. This approach raises questions about the company's ability to maintain adequate working capital for its core energy management business while pursuing this aggressive bitcoin strategy.

Strategic Implications: This move positions KULR as one of the more aggressive public companies in terms of bitcoin treasury allocation. While this could attract cryptocurrency-focused investors, it may also deter traditional investors who seek exposure to KULR's core technology business rather than cryptocurrency speculation.

HOUSTON, Feb. 11, 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 $10 million to reach a total of approximately $60 million in bitcoin acquisitions. The additional purchases were made at a weighted average price of $103,905 per bitcoin, inclusive of fees and expenses. The Company now holds 610.3 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 167.3%, 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 its 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 610.3 BTC, acquired through a total investment of approximately $60 million.

What is KULR's average bitcoin purchase price in 2025?

KULR's recent bitcoin purchases were made at a weighted average price of $103,905 per bitcoin, including fees and expenses.

What is KULR's Bitcoin Treasury Strategy announced in December 2024?

KULR's Bitcoin Treasury Strategy commits up to 90% of the company's surplus cash reserves to be held in bitcoin.

What is KULR's reported BTC Yield for 2025?

KULR reported a BTC Yield of 167.3% year to date, calculated as the percentage change in the ratio of bitcoin holdings to assumed fully diluted shares.

How does KULR fund its bitcoin purchases?

KULR funds its bitcoin purchases through a combination of surplus cash and its At-The-Market (ATM) equity program.