KULR Technology Tumbles On MicroStrategy-Like Bitcoin Play: Retail Awaits Clearer Roadmap
By Stocktwits Inc | First Published Dec 4, 2024, 10:42 PM ISTRetail investors on Stocktwits are speculating that KULR's vague Bitcoin plans may be a strategy to avoid delisting.
KULR Technology’s stock fell more than 12% after the energy management platform revealed plans to add Bitcoin to its balance sheet.
Joining the growing list of companies adopting MicroStrategy’s Bitcoin treasury strategy, KULR announced it would allocate up to 90% of its future cash surplus to Bitcoin purchases.
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Currently holding over $12 million in cash, the company plans to funnel a significant portion of any future surplus into BTC as part of its broader financial strategy.
Bitcoin itself slipped below $96,000 on Wednesday, dragging Bitcoin-linked stocks lower. As of 11:00 a.m. ET, the cryptocurrency was trading 0.5% down over the past 24 hours.
Shares of MicroStrategy, the largest corporate holder of Bitcoin, fell nearly 1%, while Marathon Digital Holdings (MARA) tumbled 1.3%.
On Stocktwits, retail investors seemed upbeat about the development, applauding the CEO’s move to include Bitcoin on the company’s balance sheets.
Other retail investors touted the move as happening before President-elect Donald takes office in January, with the incoming administration expected to be more crypto-friendly.
Some believe KULR's management's vague press statement, which did not specify exactly how much Bitcoin the company will buy and when, could be a ploy to keep the stock from getting delisted.
Genius Group, Rumble, and SOS are three other companies that have announced plans to invest in Bitcoin to diversify their treasuries over the last one month.
However, last week, Bitcoin-related investments saw $457 million in outflows — the first major outflow since early September — attributed to profit-taking after Bitcoin hit the psychological $100,000 milestone, according to CoinShares data.
Meanwhile, Wall Street Bitcoin miners reported lower November production despite BTC’s rise to $100,000. A 7% increase in network difficulty impacted mining efficiency and output across the industry.
The penny stock has gained a whopping 563.89% so far this year but is fighting to keep its share price above $1.
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