Energy company KULR Technology Group unveiled the start of its Bitcoin (BTC) treasury on Dec. 4 by acquiring 217.18 BTC for approximately $21 million, at an average purchase price of $96,556.53 per Bitcoin.
As of 2023, KURL registered nearly $11 million in total assets, which makes its Bitcoin treasury roughly twice the number reported last year.
This acquisition represents the first phase of ongoing purchases under this initiative. On Dec. 4, the company disclosed its plan to allocate up to 90% of its surplus cash reserves into Bitcoin, positioning it as a long-term.
To facilitate its Bitcoin investment, KULR partnered with Coinbase Prime. The crypto firm will provide custody solutions, USD Coin (USDC) support, and self-custodial wallet services, ensuring robust security and flexibility for KULR’s crypto holdings.
FOMO
MicroStrategy BTC acquisitions and consequential stock price increases over the past few years have potentially created a fear among other publicly traded companies of missing out.
Bitcoin miner Hut 8 recently announced a $500 million plan to add more BTC to its reserves, while Marathon Digital added 15,574 BTC last week after issuing nearly $2 billion in convertible notes.
Additionally, online video platform Rumble used $20 million in excess cash to acquire Bitcoin, followed by the Canadian company Jiva Technologies, which bought $1 million worth of BTC.
In India, tech company Jetking Infotrain became the first publicly traded firm in the country to buy Bitcoin, building a stash equivalent to 26% of its market size.
The commonly mentioned reasons behind institutional buying of Bitcoin are to hedge against inflation and add value to their companies.