- First Bitcoin-backed credit facility by KULR with Coinbase.
- Promotes Bitcoin accumulation, avoiding shareholder dilution.
- Stock surged by 23% following the announcement.
KULR Technology has secured a $20M Bitcoin-backed loan from Coinbase Credit, enhancing its Bitcoin accumulation strategy while avoiding shareholder dilution.
KULR Technology Group, Inc. has secured a $20 million Bitcoin-backed loan from Coinbase Credit to fund its Bitcoin accumulation strategy without diluting shareholder value.
Details of the Loan
KULR Technology’s Bitcoin-backed loan with Coinbase Credit reflects a strategic integration of cryptocurrency into its financial operations, witnessing a positive market response.
KULR Technology Group, led by CEO Michael Mo, deepened its commitment to Bitcoin by securing a $20 million loan from Coinbase Credit. This loan facility is secured by Bitcoin, enabling KULR to augment its Bitcoin holdings without affecting shareholder equity.
“This marks KULR’s first bitcoin-backed credit facility, giving us access to non-dilutive capital at a competitive financing rate.” — Michael Mo, CEO of KULR Technology
The loan’s favorable terms align with KULR’s strategic financial planning, underscoring Bitcoin as a core financial asset. Michael Mo emphasized this as the company’s first Bitcoin-backed facility, reflecting his forward-looking approach.
The announcement triggered a significant rise in KULR’s stock price, marking investor approval. Bitcoin stands as the primary asset affected by this action, reinforcing its role in institutional finance without directly involving other cryptocurrencies.
Market Reaction
This financial move boosts KULR’s Bitcoin holding strategies amid the evolving landscape of cryptocurrency-backed loans. The market’s reaction signals increased confidence in Bitcoin as a secure financial asset. Similar precedents show bitcoin’s growing role as reliable collateral.
Historical trends indicate a rise in Bitcoin-backed financial products, reinforcing its legitimacy in the market. KULR’s actions signal potential advancements in how institutions adopt Bitcoin, possibly influencing other companies to follow suit.
