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KULR Technology Group has joined the companies adopting the Bitcoin-first strategy after spending $21 Million to stash an additional 213.4 BTC into its Bitcoin coffers to integrate crypto into its balance sheet.
According to a press release, KULR Technology made the purchase on January 5 via Coinbase Prime. The move now fits into the company’s strategic effort to hold up to 90% of its cash in Bitcoin. Accordingly, the latest transaction has brought the company’s Bitcoin holdings to 430.6 BTC, which they bought at an average price of $97,537 per BTC.
Bitcoin’s Limited Supply of 21 Million Units Makes it Attractive.
In just about one month, KULR Technology has made an unprecedented two Bitcoin purchases after securing another 217.18 BTC worth another $21 million last December at an average price of $96,556 per BTC. With their latest Bitcoin purchase, the firm has reinforced its commitment to the Bitcoin-first strategy that leverages the flagship cryptocurrency as part of its balance sheet.
According to KULR Technology CEO Michael Mo, the company believes Bitcoin would be a good hedge against the ongoing global inflation. In his X handle, he stated:
“The distinct characteristics of BTC entail prospects for further serious interest and would stand guard against developing current events such as geopolitics, inflation, and any other macro-and political events impacting the developed economies.”
Bitcoin has a limited supply of a maximum of 21 million units, making it an appealing digital asset for companies aiming at hedging their assets against inflation and economic instability.
Stablecoin Issuer Tether Also Recently Bought Bitcoin Stash
The decision by KULR Technology Group to delve into the world of Bitcoin aligns with an emerging institutional trend from companies that are now adopting the Bitcoin-first strategy spearheaded by Michael Saylor’s MicroStrategy. With Elon Musk’s Tesla, MicroStrategy leads several companies that incorporate Bitcoin into their treasury strategies. Numerous other major companies have adopted this strategy, highlighting the growing adoption of cryptocurrencies within the corporate world.
Crypto ecosystem companies also seem keen on the Bitcoin-first strategy. The issuer of the world’s leading Stablecoin, Tether, also recently increased the size of their Bitcoin holdings. Tether is reported to have added a new stash of 8,404.5 BTC, worth nearly $780 million, bringing its total BTC reserves to 83,759 BTC, valued at approximately $7.75 billion.
KULR Technology has joined this group, which keeps growing by the day, believing that having Bitcoin holdings is a key component of financial resilience and a part of long-term planning.
Growing Number of Companies Adopting the Bitcoin-first Strategy
Other companies that have adopted the Bitcoin-first strategy include Genius Group, a company dealing with artificial intelligence issues. It reportedly spent $4 million to bring its Bitcoin stash to 153 units. This was after the company had reported embracing the Bitcoin-first strategy, which means allocating at least 90% of their cash reserves into the emerging trillion-dollar crypto industry on BTC’s potential as a long-term value store. Other companies, such as Japan’s Metaplanet and Semler Scientific, have expanded their reserve holdings to leverage Bitcoin as a strategic reserve asset.
Conclusion
Michael Saylor’s MicroStrategy pioneered the Bitcoin-first strategy, with the firm currently being the most significant Bitcoin holder among traded companies worldwide. The firm’s stash of 444,262 BTC should be worth an estimated $42.8 billion at current prices.
The San Diego-based KULR Technology Group was established in 2013 and has developed hi-tech thermal management solutions across a multi-sector umbrella focusing on areas such as electric vehicles, energy storage, cloud computing, and aerospace. The company thrives in new-age technology, where battery safety and thermal energy management are the key agenda and where it seeks collaboration with companies in need of high-performance energy solutions.
Frequently Asked Questions (FAQs)
What is Michael Saylor’s vision for the Bitcoin-first strategy?
Michael Saylor envisages Bitcoin eventually replacing fiat currencies and reaching the price of $13 million per BTC in 20 years.
How does institutional adoption of Bitcoin influence the crypto market?
Institutional adoption of BTC has enhanced the stability and credibility of the crypto market, with a growing trend of recognition of Bitcoin’s value and legitimacy.
What can other public companies learn from the Bitcoin-first strategy?
Other companies can learn to innovate and explore other revenue streams in their capital allocations.
