Technology company KULR makes a large investment in Bitcoin, with US stocks rising over 40% in early trading
On Thursday, energy management company KULR, focused on batteries and electronic devices, announced that it has purchased $21 million worth of Bitcoin and plans to allocate 90% of its cash to Bitcoin. Following the announcement, KULR's stock surged over 40% in early trading, having increased more than 1500% since its low on November 1
More and more technology companies are beginning to incorporate Bitcoin into their financial strategies.
On Thursday Eastern Time, Bitcoin briefly fell towards the $95,000 mark, dragging down cryptocurrency concept stocks across the board.
Amidst the cries of despair, energy management company KULR Technology Group saw its stock price rise against the trend, surging over 40% at one point, approaching the peak of $5.00 on the first day of its U.S. IPO on July 23, 2018, and having increased over 1500% since its low on November 1.
This significant increase is attributed to the company's earlier announcement on the same day that it had purchased 217.18 Bitcoins at an average price of $96,556.53, with a total value of approximately $21 million. KULR also stated that it plans to allocate 90% of its cash to Bitcoin. Notably, KULR chose the well-known cryptocurrency exchange Coinbase as its platform for purchasing Bitcoin.
Meanwhile, MSTR, a "Bitcoin holding giant" that has also significantly increased its Bitcoin holdings, briefly fell over 4%. The company has been purchasing Bitcoin for seven consecutive weeks and recently announced plans to raise up to $42 billion to continue expanding its Bitcoin reserves, ensuring its pioneering position in the Bitcoin space. Bitdeer Technologies rose over 6.4% to erase most of its gains, Riot Platforms fell about 3.7% before narrowing its losses, and Canaan Inc. fell about 2.9% before rising over 4.5%