KULR Technology Group has exited Bitcoin mining, repaid its Coinbase debt, and begun selling its Bitcoin holdings, unwinding a treasury strategy that once allowed up to 90% of surplus cash to go into crypto. The battery maker's second-quarter results, released this week, show a $21.97 million net loss and a 43% drop in revenue.
Why the board pulled the plug
The board made the remaining treasury available to fund operations, turning Bitcoin from an accumulation asset into a potential source of corporate liquidity. CFO Mike Kimel said the strategy provided financial flexibility but its volatility made the underlying battery business harder for shareholders to assess. KULR purchased no Bitcoin in the first half of 2026 after spending $69.9 million to acquire 693.81 BTC in the same period last year.
Paying off Coinbase
KULR had pledged 565 BTC against a $20 million Coinbase credit facility, drawing $5 million in March and $15 million in May. After June 30, it sold roughly 333 BTC for $21.5 million and used about $20 million to repay the principal, eliminating the debt and releasing all 565 BTC collateral. The sales cut its disclosed Bitcoin position by about 30% from the June 30 balance, to roughly 760 BTC.
Mining wind-down
The company dismantled its mining operation by not renewing one agreement that expired July 30 and terminating a second contract early in July, paying $150,000 to end it and eliminating about $2.1 million in remaining commitments. Q2 mining activity weakened: it earned 8.44 BTC versus 11.25 a year earlier, and mining revenue dropped to about $606,000 from $1.12 million. Over the full first half, production increased to 17.23 BTC from 14.22, but revenue slipped to $1.27 million from $1.37 million due to a lower average BTC value.
The cost of the experiment
KULR recorded a $10.59 million non-cash Bitcoin fair-value loss in Q2, contributing to the $21.97 million net loss. Revenue fell to $2.08 million, and operating loss widened 19% to $11.2 million. The company issued no shares through its at-the-market program during the first half. KULR's reversal is part of a broader reassessment among companies that adopted Bitcoin treasury strategies during the previous bull cycle.
The company now holds roughly 760 BTC, down from 1,091.69 at the end of June. With the Coinbase debt cleared and mining operations shuttered, the remaining Bitcoin is earmarked for operations. Whether KULR sells the rest or holds depends on cash needs, but the board has made clear the treasury is now a liquidity source, not an accumulation vehicle.
