Another public company abandons Bitcoin playbook after treasury volatility drove $22 million loss
KULR Technology Group has exited Bitcoin mining, repaid its Coinbase debt, and begun promoting its BTC holdings because the battery know-how company shifts capital again towards its core enterprise.
The retreat marks a pointy reversal from the Bitcoin accumulation strategy KULR launched in late 2024, which allowed as much as 90% of surplus money to be deployed into the cryptocurrency.
KULR bought no Bitcoin throughout the first half of 2026 after spending $69.9 million to amass 693.81 BTC throughout the identical interval final 12 months. Its board has additionally made the remaining treasury out there to fund operations, successfully turning Bitcoin from an accumulation asset into a possible supply of company liquidity.
Chief Financial Officer Mike Kimel mentioned the technique had offered monetary flexibility, however Bitcoin’s volatility was making KULR’s underlying battery enterprise tougher for shareholders to evaluate.
The company recorded a $10.59 million non-cash Bitcoin fair-value loss throughout the second quarter, contributing to a $21.97 million web loss. Revenue fell 43% to $2.08 million, whereas the working loss widened 19% to $11.2 million.
Since quarter-end, Kimel mentioned KULR has been reducing its Bitcoin position in a “deliberate and disciplined method” to decrease balance-sheet volatility and focus capital on its power platform. He additionally famous that the company issued no shares by way of its at-the-market program throughout the first half of the 12 months.
KULR joins a broader Bitcoin treasury retreat as core companies take precedence
According to its SEC filing, KULR entered the second half of the 12 months with 1,091.69 BTC valued at $63.92 million, down sharply from its $109.8 million price foundation.
Of that place, 565 BTC price about $33.1 million had been pledged towards a $20 million Coinbase credit score facility. KULR had drawn $5 million from the power in March and one other $15 million in May.
After June 30, the company offered roughly 333 BTC for $21.5 million and used about $20 million of the proceeds to repay the Coinbase principal. The reimbursement eradicated the debt and launched all 565 BTC that had served as collateral, eradicating the related liquidation danger.
The gross sales diminished KULR’s disclosed Bitcoin position by roughly 30% from its June 30 stability to roughly 760 BTC.
Simultaneously, KULR dismantled its mining operation by refusing to resume one mining settlement which expired on July 30.
A second contract, initially scheduled to proceed by way of October 2027, was terminated early in July. KULR paid $150,000 to finish the settlement, which eradicated roughly $2.1 million in remaining commitments.
The choice adopted weaker second-quarter mining activity. KULR earned 8.44 BTC throughout the quarter, in contrast with 11.25 BTC a 12 months earlier, whereas quarterly mining income dropped to about $606,000 from $1.12 million.
Over the total first half, nonetheless, manufacturing really elevated to 17.23 BTC from 14.22 BTC. Mining income nonetheless slipped to $1.27 million from $1.37 million as a result of the common worth of the Bitcoin earned fell to about $73,594 from $96,225.
KULR’s reversal is a part of a broader reassessment amongst a number of firms that adopted Bitcoin treasury strategies throughout the earlier bull cycle however have retreated from the business resulting from present market situations.
Market observers mentioned these companies motion present how the treasury commerce adjustments when BTC stops functioning primarily as an appreciating reserve asset and begins competing with debt discount, working money necessities, and funding in core companies.
For KULR, that shift is now specific. The company nonetheless holds a sizeable Bitcoin place, but it surely has stopped accumulating, eliminated its Bitcoin-backed leverage, closed its mining operation and given administration authority to promote extra BTC when company priorities require it.
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