- Bitcoin-backed credit facility from Coinbase Credit.
- Facility amounting to $20 million.
- KULR’s stock surged 23% after the announcement.
KULR Technology, a New York Stock Exchange-listed company, has secured a $20 million Bitcoin-backed credit facility from Coinbase Credit. The move highlights KULR’s intensified focus on increasing its Bitcoin holdings.
The facility underscores a broader industry trend of leveraging Bitcoin as collateral, potentially boosting KULR’s market influence and share value.
KULR Technology has announced its first Bitcoin-backed credit facility worth $20 million with Coinbase Credit, aiming to strengthen its Bitcoin acquisition strategy. Michael Mo, CEO of KULR, highlighted that this arrangement provides access to non-dilutive capital at competitive rates. KULR stock witnessed a 23% increase post-announcement, aligning with its dedicated Bitcoin accumulation policy, allocating up to 90% of excess cash for Bitcoin purchases. The deal draws parallels with strategies employed by companies such as MicroStrategy and Tesla.
“This marks KULR’s first bitcoin-backed credit facility, giving us access to non-dilutive capital at a competitive financing rate.” — Michael Mo, CEO, KULR Technology Group
The credit facility, secured by KULR’s Bitcoin holdings, signals growing acceptance of cryptocurrency-backed financial products. The commitment to utilizing significant portions of resources for Bitcoin highlights increased integration of cryptocurrency into corporate finances.
The financial implications are considerable, potentially signaling further stock growth and increased institutional emphasis on cryptocurrencies. Historically, KULR’s step mirrors institutional trends of strengthening financial portfolios through cryptocurrency leverage, citing data from past market shifts. The $20 million credit facility marks a notable strategic decision in cryptocurrency financing. It could influence future regulatory conversations and motivate more corporations to consider Bitcoin-backed financings. KULR’s approach aligns with larger market dynamics where cryptocurrency and traditional finance continue to intersect, promising a landscape ripe with support for emerging financial paradigms.
