In a significant move, New York Stock Exchange-listed KULR Technology Group has announced the acquisition of 217.18 Bitcoin (BTC) for approximately $21 million. This marks the launch of its Bitcoin treasury and is part of a broader strategy to allocate up to 90% of its surplus cash into Bitcoin.
Acquisition Details
According to a Dec. 26 announcement, the purchase was made at an average price of $96,556.53 per BTC. KULR said the acquisition is the first of several planned purchases as part of a strategic plan to allocate up to 90% of its surplus cash into Bitcoin.
Coinbase Prime Selected for Custody and Wallet Services
The company has selected Coinbase Prime to provide custody and self-custodial wallet services for its BTC. This partnership will enable KULR to safely store and manage its Bitcoin holdings.
CEO’s Comments on MicroStrategy’s Influence
In comments to Cointelegraph, KULR’s CEO, Michael Mo, said that the company was inspired by MicroStrategy’s Bitcoin approach:
‘He [Michael Saylor] calls BTC digital energy, which really resonated with our mission because we are an energy management company for batteries and space applications are our core.’
This statement highlights the influence of MicroStrategy’s pioneering work in establishing a Bitcoin treasury. Under the leadership of CEO Michael Saylor, MicroStrategy has become one of the largest institutional holders of Bitcoin.
MicroStrategy’s Pioneering Work
MicroStrategy’s approach to Bitcoin has been a game-changer for many companies. In 2020, the company began purchasing BTC as part of its treasury strategy. Today, it holds over 444,000 BTC in its treasury and is seeking shareholders’ approval to expand purchases in 2025.
Additional Purchases Planned
KULR conducted a survey on X (formerly known as Twitter) to gauge shareholder support for this strategy, and the response was overwhelmingly positive:
‘We received an overwhelming ‘Yes.’ Here we are buying our first block of BTC and entering into the future of money,’ said Mo. ‘We believe that BTC is the future of money.’
This statement emphasizes KULR’s confidence in Bitcoin as a store of value and its potential to become a widely accepted form of currency.
Other Companies Embracing Bitcoin Treasury Strategies
KULR is not alone in embracing Bitcoin treasury strategies. Several companies have recently unveiled similar plans, including:
- Matador Technologies: A Canadian firm that disclosed the addition of Bitcoin to its balance sheet as part of a long-term capital preservation strategy.
- Quantum BioPharma: A biopharmaceutical company that announced the purchase of $1 million worth of Bitcoin and other cryptocurrencies.
- Metaplanet: A Japanese investment firm that made its largest-ever Bitcoin acquisition, buying nearly 620 BTC.
Why Companies are Turning to Bitcoin
These companies are turning to Bitcoin for a variety of reasons. Some see it as a hedge against inflation or a way to diversify their portfolios. Others believe in the potential for Bitcoin to become a widely accepted form of currency.
Conclusion
KULR Technology Group’s acquisition of 217.18 Bitcoin marks an exciting development in the world of institutional investment. As more companies turn to Bitcoin as part of their treasury strategies, it will be interesting to see how this trend continues to evolve.
Timeline of Key Events
- December 2020: MicroStrategy begins purchasing BTC as part of its treasury strategy.
- 2022: KULR Technology Group announces the launch of its Bitcoin treasury.
- December 23, 2022: Matador Technologies discloses the addition of Bitcoin to its balance sheet.
- December 20, 2022: Quantum BioPharma announces the purchase of $1 million worth of Bitcoin and other cryptocurrencies.
- Recent days: Metaplanet makes its largest-ever Bitcoin acquisition, buying nearly 620 BTC.
Related Articles
- Saylor Floats US Crypto Framework with $81T Bitcoin Reserve Plan: An article exploring Michael Saylor’s vision for a US crypto framework and the potential for a $81 trillion Bitcoin reserve plan.
- Why Tech Giants Like Amazon May Hesitate to Adopt Bitcoin: An article discussing why tech giants like Amazon may be hesitant to adopt Bitcoin as a form of payment.
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