A technology company listed on the Up-to-date York Stock Exchange (NYSE) initiated a treasury management switch to Bitcoin when the company began investing its excess funds in the cryptocurrency.
KULR Technology Group, Inc. adopted the cryptocurrency after purchasing over 200 Bitcoins worth $21 million, following the example of other tech industry leaders who have dipped their toes into the digital asset.
Up-to-date treasury strategy
KULR Technology Group, Inc. announced that it has redefined its treasury strategy by turning to Bitcoinsaying the company drew inspiration from other tech giants that have embraced cryptocurrencies.
The NYSE-listed company said it had completed the purchases 217 Bitcoins with an estimated value of $21 million, adding that the technology company purchased the cryptocurrencies at an average price of $96,556 per coin.
KULR Technology Group CEO Michael Mo said the company followed in the footsteps of technology industry leaders who pioneered the adoption of Bitcoin in financial management.
KULR launches Bitcoin Treasury by purchasing 217.18 Bitcoins for $21 million.
Watch now and read our press release for more information: https://t.co/GClCvKTjUH pic.twitter.com/BmUWYXzMuY
— KULR Technology (@KULRTech) December 26, 2024
Mo thanked MicroStrategy co-founder Michael Saylor for showing how to apply cryptocurrency in treasury management, saying Saylor raised awareness of Bitcoin as a modern treasury strategy.
“KULR Technology Group truly walks in the shadow of giants such as Micro-strategy Incorporated & Nvidia Corp. It is thanks to these companies, leaders and their approach to Bitcoin and AI that paved the way for KULR,” Mo stated in the post.
Saylor, a staunch supporter of Bitcoin, urged companies and the US government to shift their investments towards Bitcoin.
Thank you @salor for raising awareness about our modern product $BTC Treasury strategy.@KULRTech he really walks in the shadow of giants, e.g $MSTR & $NVDA. This is thanks to these companies, leaders and their approach #bitcoin & #AI that paved the way $KULR.
Incredibly…
— Michael Mo (@michaelmokulr) December 26, 2024
Surplus Cash for Bitcoin
In a press statement, KULR Technology Group said the Bitcoin purchase is part of the company’s modern treasury strategy, adding that the technology company intends to allocate up to 90% of excess cash to the alpha cryptocurrency.
The company revealed that the $21 million bitcoin acquisition is just the first in a series of ongoing cryptocurrency purchases the company will make as part of its treasury strategy.
According to the publicly traded company, it has selected cryptocurrency exchange Coinbase as the primary platform for its depository solutions needs. The platform will also be a standalone wallet for the company’s Bitcoin.
Moreover, the technology company’s stock value increased by 40% after the announcement of its Bitcoin strategic reserve plan.
Strategic fit
Mo revealed that KULR’s Bitcoin strategy is heavily influenced by MicroStrategy’s approach to BTC.
“He calls BTC digital energy, which really aligns with our mission because we are a battery energy management company and space applications are our core,” Mo said.
He explained that the relationship between KULR’s core business and Bitcoin’s core technology is tied to the strategic fit of their investment strategy.
KULR Technology Group joins many companies that are incorporating Bitcoin into their treasury management, such as Canadian company Matador Technologies, which plans to buy $4.5 million worth of Bitcoin to preserve its capital.
Featured image from Pexels, chart from TradingView
