KULR Launches Blockchain to Create Secure and Verifiable Supply Chain

Rhea-AI Summary

KULR Technology Group (NYSE: KULR) has launched a blockchain-based supply chain initiative to enhance security and transparency in product tracking. The company will record product metadata, including NASA WI 37A-certified lithium-ion batteries, as non-fungible tokens (NFTs) on a customized rollup to Coinbase's Base L2 chain.

The system will allow for secure transfer of NFTs to buyers' wallets or KULR's burn wallet to indicate ownership changes. KULR has developed an internal UI tool that syncs with encrypted wallets to monitor inventory. This initiative follows KULR's December 2024 bitcoin treasury strategy, under which the company has acquired 668 BTC using up to 90% of its surplus cash reserves.

Positive

• Implementation of blockchain technology enhances supply chain security and transparency
• Integration with established Coinbase's Base L2 chain provides reliable infrastructure
• Strategic holding of 668 BTC demonstrates commitment to digital asset adoption
• NFT-based tracking system provides immutable verification for NASA-grade batteries

Negative

• 90% of surplus cash reserves committed to volatile bitcoin holdings poses significant financial risk
• Implementation of new blockchain system may require significant resources and adaptation period

Insights

Blockchain/Cryptocurrency Expert

KULR's blockchain initiative offers operational improvements while its substantial bitcoin holdings (668 BTC) represent a significant strategic financial position.

KULR's blockchain supply chain initiative creates digital twins (NFTs) of physical batteries, establishing immutable records of testing data for NASA-grade lithium-ion batteries. This addresses verification challenges in high-reliability applications where documentation integrity is crucial. Their implementation leverages Coinbase's Base L2 chain (built on Ethereum) with a customized rollup solution.

The more financially significant aspect is KULR's bitcoin treasury strategy. With 668 BTC already acquired and a commitment to hold up to 90% of surplus cash reserves in bitcoin (announced December 2024), the company has positioned itself with substantial cryptocurrency exposure. This unconventional treasury approach differentiates KULR from most public companies who maintain primarily fiat currency reserves.

While the blockchain supply chain initiative demonstrates forward-thinking operations, the bitcoin treasury strategy represents a more substantial financial decision that could impact the company's balance sheet depending on bitcoin price movements. The CEO's upcoming presentation at Strategy World indicates the company is actively promoting this approach as part of their corporate strategy.

Supply Chain/Operations Expert

KULR's blockchain implementation brings needed transparency to battery supply chains, creating verifiable records for high-reliability applications.

KULR's blockchain solution addresses several operational challenges in battery manufacturing and distribution. By recording each battery's metadata as a non-fungible token (NFT), the company creates an immutable record that travels with the product throughout its lifecycle. For batteries meeting NASA's rigorous WI 37A testing standards, this provides verifiable proof of compliance that cannot be altered.

The implementation includes practical operational details: NFTs transfer to buyer wallets upon purchase or move to "burn" wallets to indicate ownership transfer. For large-quantity customers, KULR will establish dedicated wallets to streamline transfers. The company has also developed an internal UI tool that synchronizes with encrypted wallets to monitor current inventory.

This approach offers three key operational benefits: enhanced security against data manipulation, streamlined verification of product authenticity, and simplified audit processes. For products requiring stringent safety verification like lithium-ion batteries, this could reduce compliance overhead and enhance customer confidence in product authenticity.

Moving from centralized systems to a distributed ledger also reduces vulnerability to outages or unauthorized access, creating a more resilient supply chain infrastructure with improved real-time visibility for all stakeholders.

HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or "KULR"), a global leader in advanced energy management solutions, today announced the launch of a blockchain-secured supply chain initiative to safeguard product-related data being offered to their customers. Moving supply chain verification and custody tracking from proprietary software onto a distributed ledger will increase transparency and security.

Decentralizing the inventory tracking system on a blockchain offers enhanced transparency, security, and real-time visibility across the entire supply chain. By recording each inventory item as a tamper-proof, timestamped entry on a distributed ledger, KULR eliminates the risk of data manipulation and ensures that all stakeholders have access to a single source of truth. This reduces reliance on centralized systems that are vulnerable to outages or unauthorized access. Additionally, blockchain’s traceability features enable KULR to verify product authenticity, monitor asset movement, and streamline audits.

One of the initial products that will be recorded on the blockchain will include lithium-ion batteries screened to meet NASA’s WI 37A rigorous methodology. Utilizing the blockchain to create a secure and immutable record of the testing data will benefit all future users of these batteries, who will have access to proven testing results.

"After launching our bitcoin treasury strategy last December, we became curious about what other aspects of the crypto ecosystem could benefit our business operations. Moving our supply chain tracking onto the blockchain seemed like a natural move for us,” KULR CEO Michael Mo commented on today’s news. “We are leveraging proven blockchain technologies to deliver commercial applications that provide our customers with a trustworthy data source and improved operational efficiency. I firmly believe many aerospace products and commercial products could benefit from an immutable and verifiable chain of custody.”

Each battery that KULR manufactures will have its metadata minted as a non-fungible token (NFT) on the blockchain. When a battery is purchased, the NFT can be transferred to the buyer’s on-chain wallet or moved to a “burn” wallet maintained by KULR to indicate ownership has been transferred. For large quantity customers, KULR will establish wallets to easily transfer NFTs associated with their orders. KULR designed an internal UI tool that synchronizes with encrypted KULR-owned wallets to view the current inventory.

The Company has built a customized rollup to Coinbase’s Base L2 chain, which is ultimately built on Ethereum.

On December 4, 2024, KULR announced board approval to commit up to 90% of its surplus cash reserves to be held in bitcoin. To date, KULR has acquired 668 BTC. As a result of KULR’s Bitcoin Treasury, CEO Michael Mo will be speaking at Strategy World next week in Orlando, Florida. Mr. Mo will be presenting a case study on KULR’s experience establishing and maintaining a bitcoin treasury.

For more information about KULR Technology Group and its bitcoin strategy, please visit www.kulr.ai.

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 the 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.kulr.ai.

Investor Relations:
KULR Technology Group, Inc.
Phone: 858-866-8478 x 847
Email: ir@kulr.ai

KULR Media Relations:
M Group Strategic Communications (on behalf of KULR)
Email: KULR@mgroupsc.com

FAQ

What is KULR's new blockchain initiative for supply chain management?

KULR has launched a blockchain-based system that records product metadata as NFTs on Coinbase's Base L2 chain, enabling secure tracking and verification of products, particularly for NASA-certified lithium-ion batteries.

How many bitcoins does KULR Technology Group (KULR) currently hold?

KULR Technology Group currently holds 668 BTC as part of its bitcoin treasury strategy announced in December 2024.

How does KULR's NFT-based battery tracking system work?

Each battery's metadata is minted as an NFT on the blockchain. When sold, the NFT transfers to the buyer's wallet or KULR's burn wallet. Large customers receive dedicated wallets for managing their NFTs.

What percentage of KULR's surplus cash is allocated to bitcoin?

KULR has board approval to commit up to 90% of its surplus cash reserves to bitcoin holdings.

How will KULR's blockchain system benefit NASA WI 37A certified batteries?

The blockchain system creates an immutable and secure record of battery testing data, providing verified testing results for all future users of NASA WI 37A certified batteries.