KULR Know-how 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 technique 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 accumulate 693.81 BTC throughout the identical interval final yr. 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 Monetary Officer Mike Kimel mentioned the technique had supplied monetary flexibility, however Bitcoin’s volatility was making KULR’s underlying battery enterprise tougher for shareholders to evaluate.
The corporate recorded a $10.59 million non-cash Bitcoin fair-value loss throughout the second quarter, contributing to a $21.97 million web 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 decreasing its Bitcoin place in a “deliberate and disciplined method” to decrease balance-sheet volatility and focus capital on its vitality platform. He additionally famous that the corporate issued no shares by way of its at-the-market program throughout the first half of the yr.
KULR joins a broader Bitcoin treasury retreat as core companies take precedence
Based on its SEC submitting, 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 value about $33.1 million have 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 threat.
The gross sales decreased KULR’s disclosed Bitcoin place by roughly 30% from its June 30 stability 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 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 exercise. KULR earned 8.44 BTC throughout 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, 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 typical 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 corporations that adopted Bitcoin treasury methods throughout the earlier bull cycle however have retreated from the business attributable to present market situations.
Market observers mentioned these corporations motion present how the treasury commerce modifications 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 corporate 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.
