The Digital Currency Revolution and the Public Companies Increasing Their Holdings

Rhea-AI Summary

KULR Technology Group has increased its Bitcoin Treasury by an additional $8 million, reaching a total of $50 million in bitcoin acquisitions. The company now holds 510 BTC, purchased at a weighted average price of $101,695 per bitcoin. This aligns with KULR's December 2024 strategy to hold up to 90% of surplus cash reserves in bitcoin.

The company has achieved a BTC Yield of 127% year to date, using surplus cash and its At-The-Market equity program. KULR uses 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 or financial return.

Positive

• Significant bitcoin holdings of 510 BTC
• 127% BTC Yield achieved year to date
• Strategic allocation of up to 90% of surplus cash to bitcoin

Negative

• Potential shareholder dilution through ATM equity program
• High exposure to bitcoin price volatility
• Significant cash allocation to volatile cryptocurrency assets

Insights

Financial Analyst

KULR Technology Group's latest $8 million Bitcoin purchase, bringing their total investment to $50 million, represents a bold but risky treasury management strategy. The company now holds 510 BTC at an average entry price of $101,695 per bitcoin, positioning themselves near the historical price peaks.

Their commitment to allocate up to 90% of surplus cash reserves to Bitcoin raises several red flags: First, this level of concentration in a volatile asset could impact operational flexibility and risk management. Second, purchasing near all-time highs could expose the company to significant downside risk if the crypto market experiences a correction.

The reported BTC Yield of 127% requires careful interpretation. While impressive at face value, this metric - which measures bitcoin holdings relative to diluted shares - may mask the actual financial impact on the company. The use of their ATM equity program to fund purchases suggests potential shareholder dilution, a critical consideration for investors.

Compared to other corporate Bitcoin holders mentioned in the article, KULR's position is relatively modest. MicroStrategy holds 450,000 BTC, Marathon Digital 44,893 BTC and Riot Platforms 17,722 BTC. However, relative to KULR's market cap of $543 million, their Bitcoin exposure represents a significant portion of their value, making them more sensitive to Bitcoin price movements than larger peers.

For investors, this strategy transforms KULR from a pure-play energy management platform into a hybrid investment combining operational business with significant crypto exposure. This fundamental change in the company's risk profile warrants careful consideration, especially given the timing of their Bitcoin purchases near market highs.

Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - January 22, 2025) - Investorideas.com, a go-to investing platform covering renewable energy and crypto stocks releases a snapshot of public companies increasing their digital holdings, featuring KULR Technology Group, Inc (NYSE American: KULR), a leader in advanced energy management platforms.

Read the full article at Investorideas.com
https://www.investorideas.com/News/2025/renewable-energy/01210KULR-Digital-Currency-Revolution.asp

As the legitimacy of Bitcoin builds under a new Trump administration, several public companies have joined the digital currency revolution.

KULR Technology Group, Inc (NYSE American: KULR) adding on to its previous investments, just announced it has increased the Company's Bitcoin purchases for its Bitcoin Treasury by an additional $8 million, reaching 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.

From the news: 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.

According to GuruFocus, "MicroStrategy could soon boost its Bitcoin (BTC) holdings if shareholders approve a proposal to increase the company's authorized Class A common shares from 330 million to 10.3 billion. The vote, set for Jan. 21, aims to raise $2 billion through a preferred stock offering to support the company's Bitcoin acquisition strategy."

From the article: "CEO Michael Saylor, a longtime Bitcoin advocate, hinted at further purchases, sharing a cryptic post on X that read, Things will be different tomorrow, alongside a company portfolio tracker graph. As of Jan. 19, MicroStrategy's Bitcoin holdings stand at 450,000 BTC, valued at $47.2 billion, according to Bitcoin.com. Despite concerns about dilution, analysts expect the proposal to pass, with Saylor controlling 47% of the voting power. If approved, MicroStrategy could have more shares outstanding than NVIDIA (NVDA), Apple (AAPL), Alphabet (GOOGL) and Amazon (AMZN)."

On January 3^rd, MARA Holdings, Inc., a global leader in leveraging digital asset compute to support the energy transformation, published unaudited BTC production and miner installation updates for December 2024.

From the news: Management Commentary:

"In December, we surpassed our year-end hash rate target of 50 EH/s while improving our fleet efficiency to 20 J/TH," said Fred Thiel, MARA's chairman and CEO. "We mined 249 blocks, the second most blocks in a month on record.

"Our energized hash rate increased to 53.2 EH/s, a 15% improvement over November, while BTC production declined 2% to 890 BTC, primarily due to a slight decrease in luck. While some of our bitcoin and hash rate was acquired outside of our own pool, MARAPool achieved an impressive annual hash rate growth of 168% in 2024, exceeding bitcoin's network growth rate of 49%. These results underscore the substantial progress we've achieved in expanding our operations and enhancing performance, further solidifying our leadership within the industry.

"In 2024, we acquired 22,065 BTC at an average price of $87,205 and mined an additional 9,457 BTC. Our year-end BTC yield per diluted share was 62.7%. Overall, we now own a total of 44,893 BTC, valued at $4.2 billion based on a spot price of $93,354 per BTC. Of note, as of December 31, 2024, we had 7,377 BTC loaned to third parties generating additional return for our stakeholders."

In mid-December, Hut 8 Corp.,a leading, vertically integrated operator of large-scale energy infrastructure and one of North America's largest Bitcoin miners, announced the purchase of approximately 990 Bitcoin. The aggregate purchase price of the acquired Bitcoin was approximately $100 million, or an average of approximately $101,710 per Bitcoin.

From the news: Combined with the Bitcoin held prior to this purchase, Hut 8's strategic Bitcoin reserve now totals 10,096 Bitcoin with a market value of more than $1 billion as of December 18, 2024. Based on publicly available information, the Company believes this positions it as one of the ten largest corporate owners of Bitcoin in the world. The 10,096 Bitcoin held in reserve were acquired through low-cost production and the strategic at-market purchase announced today for a realized average cost of $24,484 per Bitcoin. The purchased Bitcoin will play a central role in an innovative financing model for the Company's previously announced fleet upgrade.

On January 6^th, Riot Platforms, Inc., an industry leader in vertically integrated Bitcoin ("BTC") mining, announced unaudited production and operations updates for December 2024.

From the news: "Riot mined 516 bitcoin in December, a 4% increase over the previous month, as we continue increasing operational hash rate," said Jason Les, CEO of Riot. "We are pleased to share that we have finished installation of the final systems at the Corsicana Facility, completing the first 400 MW development phase. While all systems have been completed with miners installed, we are undertaking a measured commissioning process to ensure power quality as part of our commitment to being good stewards of the electrical grid, which has delayed some hash rate from coming online.

"During the year 2024, we increased our deployed hash rate by 155%, exceeding the growth of the network hash rate which increased by 52% over the same period. As a result, we mined, on an unaudited basis, a total of 4,828 bitcoin during 2024 at an all-in net power cost of 3.4c/kWh. Our mining operations and strategic purchases made during the year resulted in Riot holding 17,722 bitcoin at the end of 2024, representing a 141% increase in bitcoin held compared to the end of 2023. This has led to a 39% increase in bitcoin held per fully-diluted Riot share, or 'bitcoin yield', and represents a metric we will look to continuously improve upon for the benefit of our shareholders going forward."

With Bitcoin prices reaching new highs, this corporate financial strategy is paying off for the forward-looking companies willing to take the risk of betting on the digital currency revolution.

KULR Technology Group, Inc (NYSE American: KULR) with its long history of sustainability may have the potential for a deeper relationship in the future of digital currency, as bitcoin miners look to more energy efficient solutions. For KULR, it's a win-win!

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FAQ

How much Bitcoin does KULR Technology Group currently hold?

KULR Technology Group currently holds 510 BTC, acquired through $50 million in total bitcoin purchases.

What is KULR's average purchase price for Bitcoin in their latest acquisition?

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

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

KULR announced a strategy to commit up to 90% of its surplus cash reserves to be held in bitcoin.

What is KULR's current BTC Yield and how is it calculated?

KULR has achieved a BTC Yield of 127% year to date, calculated as the percentage change in the ratio of bitcoin holdings to Assumed Fully Diluted Shares Outstanding.