KULR Secures $20M Bitcoin-Backed Credit Facility from Coinbase Credit

Bitcoin Magazine

KULR Secures $20M Bitcoin-Backed Credit Facility from Coinbase Credit

Today, KULR Technology Group, Inc. (NYSE American: KULR) announced it has secured a $20 million bitcoin-backed credit facility from Coinbase Credit, Inc., a subsidiary of Coinbase Global (NASDAQ: COIN). 

The deal sets up a multi-draw loan facility worth up to $20 million, which KULR can access starting on the effective date. The funding will support KULR’s strategic Bitcoin accumulation goals.

“This marks KULR’s first bitcoin-backed credit facility, giving us access to non-dilutive capital at a competitive financing rate,” said the CEO of KULR Michael Mo. “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 chose Coinbase Prime to handle the storage and management of its Bitcoin assets, including custody, USDC, and self-custodial wallet services. Currently, Coinbase Prime is also the platform of choice for eight of the ten largest public companies holding Bitcoin.

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This latest move builds on KULR’s Bitcoin-focused financial strategy. On June 9, the company 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.

Under the agreement, Cantor Fitzgerald will act as the sole sales agent, using commercially reasonable efforts to sell shares at market prices. The offering will be made under an existing shelf registration and may occur from time to time based on market conditions and 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 post KULR Secures $20M Bitcoin-Backed Credit Facility from Coinbase Credit first appeared on Bitcoin Magazine and is written by Oscar Zarraga Perez.