KULR Secures $20 Million Bitcoin-Backed Credit Facility With Coinbase

KULR Technology Group has secured a $20 million credit facility with Coinbase Credit, a subsidiary of Coinbase Global. This facility is designed to support KULR's strategic goals of accumulating Bitcoin, marking the company's first Bitcoin-backed credit arrangement. The agreement provides KULR with access to non-dilutive capital at competitive rates, with loans secured by a portion of the company's Bitcoin holdings. This move follows KULR's selection of Coinbase Prime in 2024 for custody, USDC, and self-custodial wallet services for its Bitcoin holdings, aligning the company with eight of the ten largest publicly traded companies that hold Bitcoin on their balance sheets.

The credit facility, structured as a multi-draw loan, will be available to KULR upon execution of the agreement. The company intends to use the net proceeds to fund its strategic Bitcoin accumulation goals. Michael Mo, CEO of KULR, highlighted the significance of this facility, stating that it reflects the company's commitment to diversifying its funding sources and executing long-term growth strategies to drive shareholder value. The agreement allows KULR to leverage its Bitcoin holdings to secure financing without diluting its equity, providing a competitive financing rate.

KULR Technology Group is a Bitcoin First Company that specializes in sustainable energy management solutions for space, aerospace, and defense sectors. The company leverages its in-house battery design expertise, comprehensive cell and battery testing suite, and fabrication and production capabilities to deliver next-generation energy storage systems. Since late 2024, KULR has included Bitcoin as a primary asset in its treasury program and committed to allocating up to 90% of its excess cash to the acquisition of Bitcoin. This strategic move underscores KULR's dedication to integrating Bitcoin into its financial strategy, positioning the company as a leader in the adoption of digital assets.

This development might accelerate institutional integration, influencing future financial and regulatory dynamics. Bitcoin's corporate adoption, initiated by firms like MicroStrategy, has now inspired companies like KULR to adopt Bitcoin as a reserve. Their recent credit agreement marks a new wave of corporate credit backed by cryptocurrency. This initiative underscores KULR's strategic focus on Bitcoin accumulation. The credit is structured as a multi-draw loan, allowing KULR to access funds progressively. This setup ensures non-dilutive financing, essential for sustaining shareholder value, while expanding KULR's Bitcoin reserves further.

According to the Coincu research team, KULR's credit agreement with Coinbase could trigger more corporations to leverage Bitcoin-backed loans. Michael Mo, CEO of KULR Technology Group, Inc., stated: "This marks KULR’s first bitcoin-backed credit facility, giving us access to non-dilutive capital at a competitive financing rate. It reflects our commitment to diversifying our funding sources as we continue to execute on long-term growth strategies to drive shareholder value."