KULR Technology Group has significantly expanded its bitcoin treasury, adding an additional $9 million worth of bitcoin to bring its total holdings to 800.3 BTC, currently valued at approximately $78 million. According to a release shared with itcoin">Bitcoin.com News, the company executed its latest acquisition at a weighted average price of $103,234 per coin, including fees. This purchase aligns with KULR’s December 2024 strategic decision to allocate up to 90% of its surplus cash reserves to bitcoin, representing an unconventional approach to corporate treasury management that has drawn both interest and scrutiny from investors and analysts.
The technology company reports impressive returns on its itcoin-investment">bitcoin investment strategy, highlighting a 220.2% “BTC Yield” – a proprietary metric it uses to measure the growth of bitcoin holdings relative to its assumed fully diluted shares outstanding. While KULR positions this as a key performance indicator for investors, the company explicitly cautions that this metric should not be conflated with traditional yield calculations or viewed as a comprehensive reflection of its overall financial health. The calculation notably excludes liabilities and other standard financial factors typically considered in performance evaluation, presenting a specialized metric focused solely on bitcoin appreciation relative to share count.
KULR’s bold bitcoin treasury approach appears to have resonated with investors thus far, as its shares have surged more than 250% over the past six months. However, financial analysts note that this aggressive allocation strategy represents a significant departure from conventional corporate reserve practices and introduces substantial volatility risk to the company’s balance sheet. While the reported 220% yield metric highlights the substantial appreciation of bitcoin during this period, questions remain about the long-term sustainability of such a strategy amid bitcoin’s known price volatility and broader market uncertainties. As other corporations observe KULR’s experiment with interest, the company’s performance may influence whether more businesses adopt similar treasury allocation strategies in the future.
