Today, KULR Technology Group, Inc. announced Coinbase Credit, Inc., the subsidiary of Coinbase Global, Inc., (NASDAQ: COIN), has provided a $20-million credit facility backed with bitcoin.
The loan agreement provides KULR with a facility that allows it to draw on a total of $20 million. This funding will help KULR achieve its strategic goals Bitcoin accumulation goals.
“This marks KULR’s first bitcoin-backed credit facility, giving us access to non-dilutive capital at a competitive financing rate,” Michael Mo., the CEO of KULR. “It reflects our commitment to diversifying our funding sources as we continue to execute on long-term growth strategies to drive shareholder value.”
In 2024, KULR will use Coinbase Prime for the management and storage of their Bitcoin assets. This includes USDC and self-custodial services. Coinbase Prime currently is the preferred platform for eight out of the top ten public companies who hold Bitcoin.
This move is part of KULR’s financial strategy that focuses on Bitcoin. On June 9, the firm entered a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. and Craig-Hallum Capital Group LLC, allowing it to sell up to $300 million of its common stock in an at-the-market (ATM) offering to further support its Bitcoin treasury reserve.
Cantor will be the only sales agent and use commercially reasonable effort to sell the shares at the market price. The offer will take place under an existing registration on a shelf and could occur periodically depending on market conditions or company discretion.
“We view our bitcoin holdings as long term holdings and expect to continue to accumulate bitcoin,” Added KULR. “We have not set any specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional bitcoin purchases.”
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com
