KULR Expertise Group has exited Bitcoin mining, repaid its Coinbase debt, and begun promoting its BTC holdings because the battery expertise firm 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 through the first half of 2026 after spending $69.9 million to accumulate 693.81 BTC throughout the identical interval final yr. Its board has additionally made the remaining treasury accessible to fund operations, successfully turning Bitcoin from an accumulation asset into a possible supply of company liquidity.
Chief Monetary Officer Mike Kimel mentioned the technique had offered monetary flexibility, however Bitcoin’s volatility was making KULR’s underlying battery enterprise more durable for shareholders to evaluate.
The corporate recorded a $10.59 million non-cash Bitcoin fair-value loss through the second quarter, contributing to a $21.97 million internet loss. Income 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 corporate issued no shares by its at-the-market program through the first half of the yr.
KULR joins a broader Bitcoin treasury retreat as core companies take precedence
In line with its SEC filing, KULR entered the second half of the yr with 1,091.69 BTC valued at $63.92 million, down sharply from its $109.8 million value foundation.
Of that place, 565 BTC price about $33.1 million had been pledged in opposition to a $20 million Coinbase credit score facility. KULR had drawn $5 million from the ability in March and one other $15 million in Might.
After June 30, the corporate 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 steadiness to roughly 760 BTC.
Concurrently, 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 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 through the quarter, in contrast with 11.25 BTC a yr earlier, whereas quarterly mining income dropped to about $606,000 from $1.12 million.
Over the total first half, nevertheless, manufacturing truly 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 through the earlier bull cycle however have retreated from the trade as a result of 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 express. The corporate nonetheless holds a sizeable Bitcoin place, nevertheless it 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.
