KULR Technology Group is scaling back its Bitcoin holdings and mining operations after reporting a $22 million net loss, highlighting the risks of crypto treasury strategies for public companies
KULR Technology Group, a U.S.-listed battery technology company, is reversing its high-profile Bitcoin treasury strategy after reporting a $21.97 million net loss for the second quarter of 2026. The company has begun selling off its Bitcoin holdings, repaid its debt to Coinbase, and exited its mining operations, citing the impact of crypto volatility on its core business and financial reporting.
Bitcoin Exposure Drives Financial Strain
KULR's pivot away from Bitcoin marks a sharp departure from its late-2024 strategy, which allowed the company to allocate up to 90% of surplus cash into the cryptocurrency. According to company filings, KULR did not purchase any Bitcoin in the first half of 2026, after acquiring 693.81 BTC for $69.9 million during the same period in 2025. The board has now authorized the use of remaining Bitcoin reserves to fund operations, shifting the asset from a long-term holding to a liquidity source.
The company attributed its $10.59 million non-cash Bitcoin fair-value loss in Q2 to ongoing market volatility, which contributed to the wider net loss. Revenue for the quarter fell 43% year-over-year to $2.08 million, while operating losses widened to $11.2 million. KULR's leadership said the volatility of Bitcoin made it harder for shareholders to assess the underlying battery business, prompting the strategic retreat.
Debt Repayment and Mining Exit
As of June 30, 2026, KULR reported holding 1,091.69 BTC valued at $63.92 million, down from a $109.8 million cost basis. Of this, 565 BTC were pledged as collateral for a $20 million credit facility with Coinbase, from which the company had drawn $20 million earlier in the year. After the quarter ended, KULR sold approximately 333 BTC for $21.5 million and used most of the proceeds to repay the Coinbase loan, releasing the pledged collateral and eliminating liquidation risk tied to the loan.
Simultaneously, KULR dismantled its Bitcoin mining operations. The company allowed one mining agreement to expire at the end of July and paid $150,000 to terminate a second contract early, removing $2.1 million in future commitments. Mining activity had already slowed, with KULR earning 8.44 BTC in Q2 2026 compared to 11.25 BTC a year earlier. Quarterly mining revenue dropped to $606,000 from $1.12 million, and first-half mining revenue slipped to $1.27 million despite a modest increase in production, as the average value of mined Bitcoin declined.
Broader Shift Among Public Companies
KULR's retreat is part of a wider trend among public companies that adopted Bitcoin treasury strategies during the previous bull cycle but are now unwinding those positions as market conditions shift. According to company disclosures, KULR's Bitcoin holdings fell by roughly 30% after the quarter ended, leaving it with about 760 BTC as of July 23. The company has also given management authority to sell additional Bitcoin as needed to support operations, signaling a move away from accumulation and leverage.
Market observers note that as Bitcoin's role shifts from an appreciating reserve asset to a source of liquidity or debt repayment, companies face new challenges in balancing crypto exposure with operational needs. For KULR, the decision to unwind its Bitcoin strategy reflects a focus on stabilizing its balance sheet and prioritizing its core energy platform over speculative treasury management.
According to company filings, KULR's Bitcoin position as of July 23, 2026, stood at approximately 760 BTC, following the sale of 333 BTC after June 30. The company's actions eliminated its Coinbase debt and removed the risk of forced liquidation tied to pledged collateral. KULR's experience highlights the risks and complexities public companies face when integrating volatile crypto assets into their treasuries, especially when those assets are used to secure debt or fund operations.
Bitcoin's price during the second quarter of 2026 experienced significant volatility, with the company's reported fair-value loss reflecting market swings. KULR's mining revenue and production figures also illustrate the impact of declining Bitcoin prices and rising network difficulty on corporate mining profitability. The company's decision to exit mining and reduce its Bitcoin exposure underscores the operational and financial trade-offs involved in crypto treasury management for public firms.
