KULR Buys $8M More Bitcoin, Now Holds 510 BTC
Following Microstrategy’s legacy of holding Bitcoin, KULR Technology, a company specializing in advanced energy management systems, has made a big bet on Bitcoin. Interestingly, the company spent $8 million to buy more cryptocurrencies, making it Total holdings reached 510 BTC. Since announcing its Bitcoin strategy in December, KULR has invested $50 million in the digital asset.
With Trump taking office and the price of Bitcoin soaring to $109,000, the battle for corporate Bitcoin holdings has intensified. Now, with every dip, there are more buying opportunities as the market is gearing up for a big rebound.
Why KULR is betting big on Bitcoin
Notably, the company’s decision to invest in Bitcoin is part of a broader plan to use its extra cash more efficiently. Kurul Announce The strategy was launched in December, citing the growing trend of public companies holding Bitcoin as a long-term investment. The latest batch of Bitcoin purchases averaged $101,695 per coin, adding nearly 79 Bitcoins to its portfolio.
With Trump’s victory, Bitcoin is on everyone’s radar as prices are expected to go crazy this year. Additionally, it is a secure store of value, especially as the traditional financial system faces challenges such as inflation. KULR is joining the ranks of companies like Tesla and MicroStrategy that have added Bitcoin to their balance sheets.
MicroStrategy’s ongoing Bitcoin strategy
Although KULR is forging its own path, MicroStrategy still dominates the Bitcoin acquisition space. MicroStrategy went a step further, acquiring 11,000 BTC for $1.1 billion between January 13 and 20. The acquisition, at an average price of $101,191 per Bitcoin, brings the company’s total holdings to a staggering 461,000 BTC, worth $48 billion at current market prices. The Tysons, Virginia-based company funded the acquisition by selling more than 3 million shares, generating net proceeds of $1.1 billion. With $5.4 billion worth of stock still available for sale, MicroStrategy continues to pursue its ambitious “21/21” plan to raise $42 billion and acquire 1 million Bitcoins.
Additionally, the company’s co-founder, Michael Saylor, has been a strong advocate of Bitcoin’s role as a financial asset for businesses. Shareholders are expected to approve the proposal to increase authorized shares to allow for further acquisitions.
Strong returns and stock performance
However, KULR’s Bitcoin strategy appears to be paying off. The company reported a 127% return on its Bitcoin holdings so far this year. This means their investment has grown significantly compared to their total stake.
Since adopting this approach, KULR shares have soared 90%, far outpacing Bitcoin’s 7% gain over the same period. Investors appear to have reacted positively to the company’s bold move. KULR shares closed at $2.28 on Friday and rose another 2.2% in premarket trading on Tuesday.
KULR is a small company that put up a tough fight against MicroStrategy, which is quite commendable as KULR’s small-scale strategy is impressive and gives calculated risks. Although many believe that MicroStrategy’s Bitcoin holdings will doom the cryptocurrency space due to concerns about future liquidity issues.
