Energy company KULR Technology Group revealed launched its Bitcoin (BTC) treasury on December 4 by acquiring 217.18 BTC for approximately $21 million, at an average purchase price of $96,556.53 per Bitcoin.
From 2023 KURL registered nearly $11 million in total assets, making the Bitcoin treasury roughly double the number reported last year.
This acquisition represents the first phase of ongoing purchases under this initiative. On December 4, the company announced its plan to invest up to 90% of its excess cash reserves in Bitcoin, positioning it as a long-term strategy.
To facilitate its Bitcoin investment, KULR partnered with Coinbase Prime. The crypto company will provide custody solutions, USD Coin (USDC) support, and self-custodial wallet services, ensuring robust security and flexibility for KULR’s crypto holdings.
FOMO
The MicroStrategy BTC acquisitions and resulting share price increases in recent years may have created a fear of missing out among other publicly traded companies.
Bitcoin miner Hut 8 recently announced a $500 million plan to add more BTC to its reserves, while Marathon Digital added 15,574 BTC last week after issuing nearly $2 billion in convertible bonds.
Additionally, online video platform Rumble used $20 million in cash to acquire Bitcoin. followed by Canadian company Jiva Technologies, which bought $1 million worth of BTC.
In India, technology company Jetking Infotrain became the first listed company in the country to buy Bitcoin. build up a stock equal to 26% of the market size.
The often cited reasons behind institutional purchases of Bitcoin are to hedge against inflation and add value to their businesses.
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Gino Matos
Gino Matos is a law graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise focuses primarily on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
