KULR drops Bitcoin strategy after $22M hit

KULR Technology Group abandoned its Bitcoin accumulation plan and halted mining after volatility in its crypto holdings contributed to a $21.97 million net loss.

The company reported it bought no Bitcoin in the first half of 2026 and sold about 333 BTC after June for roughly $21.5 million. KULR used about $20 million of the proceeds to repay a $20 million credit facility with Coinbase, eliminating the loan and freeing 565 BTC that had been pledged as collateral. After those transactions the company’s disclosed holdings stood at about 760 BTC.

At the start of the second half KULR listed 1,091.69 BTC on its balance sheet, recorded at $63.92 million and purchased at a cost basis of $109.8 million. A $10.59 million non-cash Bitcoin fair-value loss in the second quarter was a material contributor to the quarter’s net loss.

Revenue for the quarter fell 43% to $2.08 million and operating loss widened 19% to $11.2 million. Mining revenue declined to about $606,000 in the quarter from $1.12 million a year earlier.

KULR stopped its mining operations. One mining agreement was allowed to expire on July 30 and a second contract was terminated early in July for a $150,000 fee, removing about $2.1 million in remaining commitments. Production weakened in the quarter: the company mined 8.44 BTC in Q2 compared with 11.25 BTC a year earlier. Over the full first half, production rose to 17.23 BTC from 14.22 BTC, while half-year mining revenue fell to $1.27 million from $1.37 million as the average value of Bitcoin earned declined.

Chief Financial Officer Mike Kimel noted the Bitcoin accumulation had provided financial flexibility but that price swings made it harder for investors to assess the company’s battery business. He described the reduction of the crypto position as “deliberate and disciplined” and said the company issued no shares through its at-the-market program during the first half. The board has authorized management to use the remaining cryptocurrency treasury to fund operations as needed.

KULR continues to hold a significant Bitcoin stake but has stopped buying coins, removed bitcoin-backed leverage, closed mining operations and allowed management to sell additional holdings when corporate needs require it.