Today, KULR Technology Group, Inc. (NYSE American: KULR) revealed it has acquired a $20 million bitcoin-supported credit facility from Coinbase Credit, Inc., a division of Coinbase Global (NASDAQ: COIN).
The arrangement establishes a multi-draw loan facility totaling up to $20 million, which KULR can access beginning on the effective date. The financing will assist KULR’s strategic Bitcoin accumulation objectives.
“This signifies KULR’s inaugural bitcoin-supported credit facility, providing us access to non-dilutive capital at a favorable financing rate,” stated KULR’s CEO Michael Mo. “It underscores our dedication to diversifying our funding sources as we proceed with long-term growth strategies aimed at enhancing shareholder value.”
In 2024, KULR selected Coinbase Prime to oversee the storage and administration of its Bitcoin assets, encompassing custody, USDC, and self-custodial wallet services. At present, Coinbase Prime is also the chosen platform for eight of the ten largest public companies possessing Bitcoin.
This recent development builds upon KULR’s Bitcoin-centric financial strategy. On June 9, the firm entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. and Craig-Hallum Capital Group LLC, enabling it to sell up to $300 million of its common stock in an at-the-market (ATM) offering to further bolster its Bitcoin treasury reserve.
According to the agreement, Cantor Fitzgerald will serve as the exclusive sales agent, employing commercially reasonable efforts to sell shares at market prices. The offering will be executed under an existing shelf registration and may take place from time to time, contingent upon market circumstances and company discretion.
“We regard our bitcoin holdings as long-term assets and anticipate continuing our bitcoin accumulation,” KULR added. “We have not established any particular target for the volume of bitcoin we aim to hold, and we will continuously assess market conditions in deciding whether to pursue additional bitcoin acquisitions.”