KULR Sells 333 Bitcoin to Exit $20M Coinbase Loan

KULR Sells 333 Bitcoin to Clear Coinbase Credit

KULR’s filing is unusually specific about the sequence. It sold 333 BTC through open-market transactions to unrelated purchasers, generated about $21.5 million in gross proceeds, then applied net proceeds to the $20 million facility. The exact amount of the net proceeds was not separately disclosed.

The transaction clears the principal, but it does not mean every cash obligation is already settled. The company said accrued and unpaid interest will be calculated at the end of the month and paid in August. KULR did not disclose the final interest amount, its sale-by-sale execution venues or the purchasers.

The filing says all 565 BTC pledged as collateral are expected to be released once the facility is repaid in full. That figure is more than the 333 BTC sold because collateral and the coins used to generate repayment proceeds are separate pools. The filing does not say when Coinbase will complete the release or whether the company will re-pledge any BTC afterward.

In its first-quarter 10-Q, KULR described a $20 million credit facility with Coinbase and reported a $5 million March drawdown followed by a $15 million May drawdown. The May loan carried a 7% annual loan fee and was secured with Bitcoin. Friday’s filing shows the company has used a portion of its BTC reserve to unwind that arrangement.

The distinction is material for a corporate treasury. A BTC holding has market exposure, but BTC posted as collateral also carries a financing function and may be subject to coverage rules. Repaying the facility removes the loan principal and is expected to free pledged coins, while leaving KULR exposed to the price of the roughly 760 BTC it says it still holds.

$21.5M Sale Trades Bitcoin Exposure for Lower Leverage

KULR characterized the sale as a balance-sheet decision. The company said the objective was to reduce interest expense and remove collateral and liquidation risk while preserving “meaningful exposure” through its remaining holdings. That phrase is management’s view, not a measure of future performance.

At the reported average sale price, 333 BTC produced about $21.49 million before the difference between gross and net proceeds. The total is close to the $20 million principal that KULR needed to repay, explaining why the filing describes the transaction as a deliberate sale of enough Bitcoin to clear the facility.

The choice also makes KULR’s situation different from a simple spot-market trade. The company has a core battery and energy-systems business, while the 8-K says the remaining net proceeds will be used for general corporate purposes. It does not identify a specific operating expense, acquisition, product program or new Bitcoin allocation.

The broader market setting was cautious. CoinGecko’s history page showed BTC closed at about $60,909 on June 24, recovered above $66,000 on July 21, and closed at $65,052 on July 23. KULR’s $64,538 weighted-average sale price therefore landed below the July 21 close but above several early-July closes.

That arithmetic does not establish whether the sale helped or hurt the market. About $21.5 million is small relative to Bitcoin’s daily trading volume, and the filing does not attribute any BTC price movement to KULR. The more direct read-through is on corporate financing: a lower debt balance can reduce a company’s exposure to a collateral call, while a smaller BTC position changes the scale of its price exposure.

Daily Crypto Briefs recently reported on Strategy building a $3.225 billion cash reserve, another example of a Bitcoin treasury company separating liquidity management from the size of its coin stack. The mechanisms differ, but KULR’s filing reinforces the same practical split between an asset reserve and the cash needed to service obligations.

KULR Keeps 760 BTC as Interest Payment Nears

KULR reported approximately 760 BTC as of July 23. The filing does not state an aggregate acquisition cost, an average purchase price, a target reserve size or a future schedule for buying or selling. It also does not say whether the expected release of 565 pledged BTC has already occurred.

That leaves the next relevant event relatively narrow. Investors can watch for confirmation that the collateral has been released, the amount of accrued interest paid in August and the company’s next disclosure on total BTC holdings. Those facts will show whether the transaction was a one-time deleveraging step or part of a broader shift in treasury management.

The Crypto Fear and Greed Index read 28, or Fear, on July 24. It is a broad Bitcoin-market sentiment measure, not a score for KULR’s credit position, but it frames why collateral and cash planning can receive more attention when price conditions remain unsettled.

KULR has not announced another Bitcoin sale or a new credit facility in the filing reviewed. For now, the confirmed result is straightforward: it sold BTC to remove $20 million of loan principal, expects to free collateral and keeps a smaller but still material Bitcoin reserve on its balance sheet.