San Diego, CA Publicly traded energy technology firm KULR Technology has invested into Bitcoin by purchasing 217.18 BTC as part of a new Bitcoin Treasury program worth $21 million. This move was contingent on the firm’s policy of directing 90% of its excess cash into the cryptocurrency.
On Thursday, the San Diego-based company released a press statement on December 26, saying that Bitcoins had been purchased at an average of $96,556.53 per coin. The company well received the news in pre-market trading; KULR’s shares were up 3.51 percent, based on data from Nasdaq.
KULR Strengthens Position With Bitcoin Amid Financial Shifts
KULR mainly deals with high-performance thermal materials and applications, particularly batteries and electronics parts. Its shift towards Bitcoin can be viewed as a tactical move to strengthen its position amid the battle for the survival of the fittest business models. Due to the digital currency, it can protect its financial assets against inflation and generate significantly more revenue than traditional forms of monetary transactions.
When announcing the purchase, KULR CEO Michael Mo pointed to Bitcoin’s global acceptance as a reason the company decided. “In our view, Bitcoin remains a long-term investment that would help to improve our balance sheet while progressing operations,” Mo said.
The $21 million acquisition is the first in a series of planned Bitcoin purchases looking toward President Maduro’s goal of creating a payment system that is not reliant on international players. The firm has been venturing into confidence in Coinbase Prime to manage the custody and wallet services of KULR’s digital assets.
Like other corporations, KULR’s investment behooves it to utilize Bitcoin as a strategic asset. Earlier this month, edtech player Genius Group announced it had made a $4m investment to buy more Bitcoin, which took its total to 153 BTC and signaled the company’s ‘Bitcoin-first’ approach to its investment.
Other big investors, such as Artificial Media Holdings Ltd MicroStrategy and Nasdaq-listed Acurx Pharmaceuticals, have recently increased their BTC exposure. To these firms, Bitcoin is an inflationary hedge and complementary to their technological advancement agendas.
KULR’s brave move towards the cryptocurrency market can be viewed as a trend of traditional industries’ active adoption of Bitcoin as a financial instrument. That, however, has been offset by the fact that the average purchase price per Bitcoin is $96,556. 53, underlining the increase in customer confidence in Bitcoin‘s future value.
It may set a precedent for other firms to do the same, as adopting cryptocurrency as an operating model for treasury strategies gains traction. The $21 million deal shows the company’s further development as a technology giant interested in financial issues.
KULR Technology is an HVAC company in the United States that offers exclusive thermal management solutions for various industries, including electronics and energy storage. Originally based in San Diego, KULR has been diversifying its product line through innovative market development and sound business models
