Introduction and Background
KULR Technology Group (NYSE American: KULR) is a U.S.-based company specializing in energy storage and thermal management solutions, with a particular focus on battery technologies for aerospace, aviation, and defense. In late 2024, KULR made headlines when the board decided to include Bitcoin (BTC) as the primary asset in its treasury program. This strategic shift meant that KULR intended to allocate a significant portion of its liquid assets into Bitcoin moving forward. Specifically, the company decided to invest up to 90% of its excess cash reserves into BTC.
On December 4, 2024, KULR officially announced this Bitcoin Treasury strategy. The reasons behind this decision were clearly communicated: KULR sees Bitcoin as a store of value with long-term appreciation potential, as well as a hedge against geopolitical risks, inflation, and other macroeconomic uncertainties. CEO Michael Mo emphasized Bitcoin’s unique characteristics and its growing acceptance worldwide, not only by businesses and financial institutions but also at the government level. He stated that a Bitcoin treasury could strengthen KULR’s financial position while driving the expansion of its core business and responsibly investing excess capital into an independent reserve. This statement underscores KULR's view of Bitcoin as a complementary asset alongside its core business to enhance shareholder value.
The decision came amidst a growing recognition of Bitcoin in the U.S. In 2024, there were political initiatives such as the proposal for a national strategic Bitcoin reserve by Senator Cynthia Lummis and statements from the then President-Elect suggesting that a national Bitcoin sovereign wealth fund could even be considered. In this context, KULR positioned itself early to benefit from the expected further establishment of Bitcoin as an asset class.
Implementation of the Bitcoin Strategy
How did KULR proceed? First, the company established guidelines to acquire Bitcoin gradually and in accordance with its liquidity position. The first Bitcoin purchase occurred in December 2024: KULR acquired 217.18 BTC for approximately 21 million USD. This corresponded to an average Bitcoin price of about 96,556 USD per BTC—at the time, a record high for the cryptocurrency. This purchase on December 26, 2024, marked the beginning of KULR’s Bitcoin implementation and was the first of several planned BTC purchases. KULR chose a trusted partner for the custody of its digital assets: The acquired Bitcoins are managed through Coinbase Prime. Coinbase (NASDAQ: COIN) provides institutional custody solutions, including cold storage and secure wallets, as well as the ability to work with stablecoins (USDC). Through this partnership, KULR ensures that its Bitcoin holdings are professionally secured and insured, rather than managed in-house.
Following the initial purchase in December, KULR made additional Bitcoin acquisitions: In early 2025, KULR significantly increased its holdings. On January 6, 2025, it was announced that the company had acquired approximately 213.4 BTC for another 21 million USD, bringing its total holdings to about 430.6 BTC. Just two weeks later, on January 21, 2025, KULR made another purchase—this time for 8 million USD, increasing the total to 510 BTC. Finally, in February, KULR made another purchase: On February 11, 2025, the company announced a 10 million USD investment in Bitcoin, bringing the total holdings to 610.3 BTC. In total, by February 2025, KULR had invested approximately 60 million USD in Bitcoin, with a weighted average purchase price of about 98,000 USD per BTC.
Notably, KULR financed these acquisitions in part through an At-The-Market (ATM) equity program. Through this program, KULR was able to issue new shares directly on the market, raising additional capital for further Bitcoin purchases. This strategy—diluting existing shares to finance Bitcoin acquisitions—shows KULR's conviction in BTC but also carries risks for shareholders (more on this later). In any case, the ATM program allowed KULR to capitalize on the rapid rally in its stock price (triggered by the Bitcoin plans) to raise fresh capital at high prices and reinvest it in Bitcoin. According to company statements, the combination of excess cash and proceeds from new stock issuances was key to quickly building up its BTC holdings.
KULR also introduced its own performance indicator, called "BTC Yield."
This KPI measures the percentage change in Bitcoin holdings per outstanding share (fully diluted) over time. Simply put, BTC Yield shows how much KULR's Bitcoin ownership grows relative to the number of shares. By February 2025, KULR had achieved an impressive BTC Yield of 167.3% (Year-to-Date). This high growth reflects how aggressively KULR has expanded its Bitcoin position in a short period. However, KULR itself points out that BTC Yield is not a traditional financial metric and does not reflect the company's operational performance or liquidity. Instead, it is meant to internally illustrate the success of the Bitcoin accumulation strategy.
Current Status of the Strategy (March 2025)
As of March 21, 2025, KULR is fully implementing its Bitcoin Treasury strategy. The company currently holds about 610 BTC on its balance sheet. This amount is worth approximately 50–51 million USD at the current BTC market price of around 84,000 USD. This makes Bitcoin a significant part of KULR's liquid reserves. By comparison, KULR's market capitalization is currently around 376 million USD, with about 13.6% of it covered by the Bitcoin reserves. While Bitcoin accounts for roughly one-seventh of the market value, the strategy holds both symbolic and financial weight.
o date, the company has not reported any sales of its BTC—on the contrary, it emphasizes its long-term commitment. KULR remains adaptable and intends to make additional purchases depending on market conditions and its own cash flow. Up to 90% of excess cash reserves can still be invested in Bitcoin. Given the previous investments of approximately 60 million USD in BTC, it can be concluded that KULR has already shifted most of its available resources. However, should additional capital (e.g., from future profits, capital increases, or financing) become available, this strategy path remains open.
As of March 2025, KULR's acquisition cost per BTC is approximately 98,000 USD—while the market price is around 84,000 USD, KULR emphasizes the long-term horizon. Short-term paper losses do not seem to deter management; they refer to the strategic nature of the position and emphasize that Bitcoin is being used to build an “independent treasure” as part of the company’s finances. In summary, KULR's Bitcoin engagement as of March 21, 2025, can be quantified as follows:
Bitcoin holdings: ~610 BTC
Total investment: ~60 million USD (since December 2024)
Average purchase price: ~98,000 USD/BTC
Value on March 21, 2025: ~50 million USD (at BTC ~84k)
Share of market capitalization: ~13–14%
Planned holding: Hold as long-term reserve; further acquisitions possible depending on liquidity
Stock Price Development and Volatility
The effects of the Bitcoin strategy were very evident in KULR's stock price. The announcement and implementation of this unconventional treasury policy triggered a significant stock rally. Prior to the announcement, KULR was a small-cap stock, trading below 0.50 USD for much of 2024. However, once the plans were made public, the stock price skyrocketed:
As the chart above illustrates, the short-term surge in the stock price began in December 2024. After KULR made the Bitcoin strategy public and made the first purchase, the stock price multiplied within a few weeks. On December 26, 2024, KULR reached an all-time high of around 4.80 USD (with prices briefly reaching up to ~5.50 USD during the day). In comparison, the stock was still below 1 USD at the beginning of December. This meant an increase of over 1000% within two months, from the fall of 2024 to the end of the year. The news of the first Bitcoin purchase alone caused the stock price to jump about 30% in a single day. The prospect that a small battery-tech company had invested a significant portion of its capital in Bitcoin—and intended to make further purchases—seemed to spark a wave of speculative interest in the stock.
However, this rally was accompanied by significant volatility. As is often the case, the hype was followed by a correction: By early 2025, the stock began to fluctuate noticeably and lost some of its gains. Many early speculators likely took profits, while investors reacted to the fluctuating Bitcoin price. Bitcoin itself reached historic highs around the turn of the year 2024/25 (above 95,000 USD), but then slightly retraced in Q1 2025 (to around 80–90k USD). As a result, KULR's stock price also fluctuated greatly: In January 2025, the stock was still around 3–4 USD, but by February, it had fallen to the 2–2.5 USD range. By March 2025, the price had further declined to around 1.50–1.60 USD. From the peak, this represented a decline of about 70%. Nevertheless, the stock was still trading significantly higher than before the Bitcoin strategy was introduced (when it was often below 0.20 USD)—so long-term investors still had significant paper gains despite the correction.
Interestingly, KULR's stock fluctuated disproportionately to Bitcoin—almost like a leveraged BTC trade. As Bitcoin rose at the end of 2024, KULR's stock shot up disproportionately (a 16-fold increase compared to Bitcoin’s ~270% rise in 2024). Conversely, KULR’s losses during the pullback were also more pronounced.
External Assessments and Impacts on the Company
The radical Bitcoin strategy did not go without criticism. Some financial analysts and industry observers warned about the risks of this approach. It was noted that KULR is now exposed to significant cryptocurrency volatility, which could lead to fluctuating balance sheets and potential write-downs.
Another point of criticism concerns the capital measures. KULR financed its Bitcoin purchases in part through the ATM equity program, i.e., issuing new shares. This leads to dilution of existing shareholders' stakes. One comment in a stock blog compared KULR’s approach to “selling company shares to buy lottery tickets.”
On the other hand, Bitcoin enthusiasts and some tech investors see KULR's move as a bold and forward-thinking decision. Management frames it as a strategic pivot to benefit from the value appreciation of a scarce digital resource in the long term. Should Bitcoin continue to rise in value in the coming years and perhaps become more deeply entrenched in the financial system, KULR could gain significant financial advantages from this move.
Additionally, the company has likely gained easier access to capital due to the increased attention. High trading volumes and greater recognition could benefit future financing rounds. In a way, KULR has expanded its shareholder base: alongside traditional investors, crypto-savvy investors and speculators may now hold shares. This could support demand for the stock as long as interest in Bitcoin remains high.
The fresh capital raised from stock sales was invested in Bitcoin, not directly into the operational business; however, KULR could liquidate its BTC if needed to finance new projects.
In interviews, CEO Michael Mo defended the decision, emphasizing that the company acted after careful analysis and sees Bitcoin as a long-term benefit for shareholders.
Conclusion
Much is at stake for KULR. If Bitcoin continues its success story, KULR could benefit in two ways: from the appreciation of its treasury and increased attention to the company. However, should Bitcoin enter a prolonged period of weakness, KULR will have to prove the resilience of its core business to maintain investor trust. In any case, KULR has already made history with its Bitcoin strategy and gained valuable experience. A deep look into this example provides insights into how traditional corporate finances and crypto-assets can be integrated—and what pitfalls may arise. Thus, KULR Technology Group has become a pioneer of a new treasury philosophy, from which investors and other companies will learn, both for better and worse.
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