KULR Technology Group has stopped buying Bitcoin, repaid its Coinbase debt, and started selling down its treasury as the battery technology company redirects capital toward its core business. The retreat follows a $21.97 million net loss in the second quarter and mirrors a broader pullback among corporate Bitcoin treasuries.
KULR Technology Group has exited Bitcoin mining, repaid its Coinbase debt, and begun selling its BTC holdings as the battery technology firm shifts capital back toward its core business. The move marks a sharp reversal from the Bitcoin accumulation strategy KULR launched in late 2024, which allowed up to 90% of surplus cash to flow into the cryptocurrency.
Losses widen as Bitcoin volatility hits the balance sheet
KULR purchased no Bitcoin during the first half of 2026, after spending $69.9 million to acquire 693.81 BTC during the same period last year. Chief Financial Officer Mike Kimel said the strategy had provided financial flexibility, but Bitcoin's volatility was making the company's underlying battery business harder for shareholders to assess.
The company recorded a $10.59 million non-cash Bitcoin fair-value loss during the second quarter, contributing to a $21.97 million net loss. Revenue fell 43% to $2.08 million, while the operating loss widened 19% to $11.2 million.
Since quarter-end, Kimel said KULR has been reducing its Bitcoin position in a "deliberate and disciplined manner" to lower balance-sheet volatility and concentrate capital on its energy platform.
Debt repayment removes liquidation risk
KULR entered the second half of the year with 1,091.69 BTC valued at $63.92 million, down sharply from its $109.8 million cost basis, according to its SEC filing. Of that position, 565 BTC worth about $33.1 million had been pledged against a $20 million Coinbase credit facility.
After June 30, the company sold approximately 333 BTC for $21.5 million and used about $20 million of the proceeds to repay the Coinbase principal. The repayment eliminated the debt and released all 565 BTC that had served as collateral, removing the associated liquidation risk. The sales reduced KULR's disclosed Bitcoin position by roughly 30% from its June 30 balance to approximately 760 BTC.
Mining operation wound down
KULR also dismantled its mining operation, refusing to renew one mining agreement that expired on July 30. A second contract, originally scheduled to run through October 2027, was terminated early in July; KULR paid $150,000 to end the agreement, eliminating approximately $2.1 million in remaining commitments.
Quarterly mining revenue dropped to about $606,000 from $1.12 million as mining activity slowed. KULR's reversal joins a broader reassessment among several companies that adopted Bitcoin treasury strategies during the previous bull cycle but have since retreated given current market conditions.
Source: CryptoSlate
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