KULR Technology Group Inc. Enhances Bitcoin Mining Activities
KULR Technology Group Inc. (NYSE American: KULR) announced a significant enhancement to its bitcoin mining activities on July 9, detailing the deployment of 3,570 advanced mining machines in Asunción, Paraguay. These Bitmain S19 XP machines, each capable of 140 terahash per second (TH/s), collectively boost the company’s global mining capacity to an impressive 750 petahash per second (PH/s).
Financial Developments
In addition to expanding its mining capabilities, KULR disclosed that it has secured a $20 million credit facility agreement with Coinbase Credit Inc., which is a part of Coinbase Global Inc. This deal, unveiled on July 8, sets the stage for a multi-draw term loan that allows KULR to draw funds as needed over the course of their operations.
Strategic Approach to Bitcoin Acquisition
KULR’s strategy for bitcoin acquisition, which the company describes as “buy-or-mine,” is integral to optimizing its investment in bitcoin (BTC). The CEO of KULR, Michael Mo, highlighted the importance of this approach, explaining how it allows the company to efficiently build its BTC holdings. Mo noted that while bitcoin has outperformed other asset classes in 11 out of the past 14 years, the unpredictable nature of price cycles—and variables such as hashrate volatility and energy market fluctuations—necessitates a flexible strategy.
“Relying solely on either mining or purchasing could lead us to miss out on opportunities as market dynamics change.”
KULR’s dual-focused strategy aims to capitalize on both mining and market opportunities to enhance profitability and reinforce its financial resilience.
Expansion of Leasing Business
Furthermore, KULR is not just focused on expanding its mining operations but is also enhancing its leasing business for mining machines. Recently, the company deepened its relationship with a U.S. exchange-listed entity by securing a lease for ASIC miners along with a consulting services agreement. This collaboration is set to aid KULR in managing its mining operations and treasury effectively.
As part of its growth plans, the company has set a target to reach a capacity of 1.25 exahash per second (EH/s) by the end of summer.
