Following the legacy of Microstrategy of holding Bitcoin, KULR Technology, a company specializing in advanced energy-management systems, has made another big bet on Bitcoin. Interestingly the company has spent a whopping amount of $8 million to buy more of the cryptocurrency, bringing its total holdings to 510 BTC. Since announcing its Bitcoin strategy in December, KULR has invested $50 million in the digital asset.
With Bitcoin hitting an ATH of $109K with Trump’s inauguration, the corporate Bitcoin holding war is getting intense. Now with every dip there will be more buying opportunities as the market is getting prepared for a mega rally.
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 effectively. KULR announced this strategy last December, citing the growing trend of public companies holding Bitcoin as a long-term investment. The purchase price for this latest batch of Bitcoin averaged $101,695 per token, adding nearly 79 BTC to its portfolio.
With Trump’s win, Bitcoin is getting all the attention as the prices are expected to go insane this year. Also, it is a safe alternative way to store value, especially as traditional financial systems face challenges like inflation. KULR is joining a list of companies, including Tesla and MicroStrategy, that have added Bitcoin to their balance sheets.
MicroStrategy’s Ongoing Bitcoin Strategy
While KULR is carving its path, MicroStrategy continues to dominate the Bitcoin acquisition space. Stepping its game higher, MicroStrategy acquired 11,000 BTC for $1.1 billion between January 13 and 20. This purchase, at an average price of $101,191 per Bitcoin, brings the company’s total holdings to a staggering 461,000 BTC, valued at $48 billion at current market prices. The Tysons, Virginia-based firm funded this acquisition by selling over 3 million shares, generating $1.1 billion in net proceeds. With $5.4 billion worth of shares still available for sale, MicroStrategy continues to pursue its ambitious “21/21” plan to raise $42 billion and acquire 1 million BTC.
Moreover, the company’s co-founder, Michael Saylor, has been a vocal advocate for Bitcoin’s role as a corporate treasury asset. Shareholders are expected to approve a proposal to increase authorized shares, enabling further acquisitions.
Strong Returns and Stock Performance
However, KULR’s Bitcoin strategy seems to be paying off. The company reported a 127% year-to-date yield on its Bitcoin holdings. This means their investment has grown significantly compared to their total shares.
Since adopting this approach, KULR’s stock price has surged by 90%, far outpacing Bitcoin’s 7% gain in the same period. Investors appear to be responding positively to the company’s bold move. KULR’s shares closed at $2.28 on Friday and rose another 2.2% in pre-market trading on Tuesday.
KULR, a small firm is giving a tough fight to MicroStrategy is quite commendable as KULR’s low scale strategy is impressive and gives a calculated risk. While many believe MicroStrategy’s Bitcoin holding will doom the crypto space with fear of liquidity issues in future.
