KULR Technology Group has reversed its Bitcoin treasury strategy, exiting Bitcoin mining, repaying its Coinbase credit facility, and selling a meaningful portion of its BTC holdings as it pivots capital back to its battery and energy platform.
The company initially adopted an aggressive accumulation policy in late 2024, allowing up to 90% of surplus cash to be deployed into Bitcoin. After spending $69.9 million to acquire 693.81 BTC in the first half of 2025, KULR purchased no Bitcoin during the first half of 2026.
Chief Financial Officer Mike Kimel said the strategy had provided financial flexibility, but Bitcoin’s volatility made the underlying battery business harder for shareholders to evaluate.
The financial strain was visible in the second quarter, when KULR recorded a $10.59 million non-cash Bitcoin fair-value loss, leading to a $21.97 million net loss. Revenue dropped 43% to $2.08 million, while the operating loss widened 19% to $11.2 million.
At the end of June, KULR held 1,091.69 BTC valued at $63.92 million, down from a cost basis of $109.8 million. It had pledged 565 BTC as collateral against a $20 million Coinbase credit facility, drawing $5 million in March and another $15 million in May. After June 30, the company sold approximately 333 BTC for $21.5 million and used around $20 million to repay the principal, eliminating the debt and releasing all collateral.
The sales cut KULR's position to roughly 760 BTC. The company also dismantled its mining operation by not renewing one agreement that expired on July 30 and terminating a second contract early in July, paying $150,000 to cancel $2.1 million in remaining commitments. Mining output fell to 8.44 BTC in the second quarter from 11.25 BTC a year earlier, and quarterly mining revenue declined to about $606,000 from $1.12 million.
The retreat is part of a broader reassessment of corporate Bitcoin treasury strategies. Sequans completed a full unwind of its Bitcoin holdings, Trump Media reported a $406 million first-quarter loss partly tied to Bitcoin markdowns, while Strive has continued accumulating nearly 19,900 BTC. KULR’s reversal underscores how volatility-linked losses can push boards to treat Bitcoin as a liquidity source rather than a long-term reserve asset.
