Bitcoin (BTCUSD) has had a tremendous run in 2024, with its price up more than 113% on a year-to-date basis. Still-high inflation and President-elect Donald Trump's support for the cryptocurrency led to the new-age safe-haven asset reaching new heights.
However, apart from Bitcoin's importance in investment and strategic matters, the cryptocurrency is shaping companies' corporate strategy as well. A prime example of this is Michael Saylor-led MicroStrategy (MSTR), which has outperformed software giant Microsoft (MSFT) this year.
Following in Saylor's footsteps, another company is also working on making Bitcoin a key aspect of its operations.
About KULR Technology
Founded in 2013, KULR Technology (KULR) specializes in thermal management and energy storage solutions for batteries and electronic systems. KULR was established to commercialize advanced thermal management technologies that were developed for aerospace and defense applications. The company's solutions have been utilized by organizations such as NASA, Boeing (BA), and Raytheon (RTX). Its market capitalization currently stands at about $1.11 billion.
KULR stock's rise has been meteoric this year, zooming an eye-popping 2,259% on a YTD basis.
#1 Financials
Although it is not yet profitable, KULR's results for the latest quarter had some encouraging signs. The company reported record quarterly revenue of $3.19 million, which denoted a growth of 5% from the previous year. Its net loss also narrowed from $0.05 to $0.01 in the most recent quarter. Notably, its losses were also narrower than the consensus estimate of a loss of $0.02 per share.
Gross margins improved markedly to 71% from 44% last year. The company ended the quarter with a cash and accounts receivable balance of $3.6 million.
Meanwhile, in the quarter, the company forged a licensing partnership worth $2.35 million for its Xero Vibe Technology, a proprietary technology aimed at vibration reduction, with a leading Japanese semiconductor company. This is its first step into licensing its intellectual property as part of its business model.
#2 Drivers
On Dec. 26, KULR announced the acquisition of 217.18 Bitcoin for a total value of about $21 million. Its average price was $96,556.53 per BTC. The company stated that this acquisition marks the first of several planned purchases, aligning with its broader strategy to allocate up to 90% of its surplus cash into Bitcoin.
This strategy can be a prudent one as Bitcoin's adoption as a form of money is accelerating, supported by pro-crypto policies and a shift toward productivity and innovation in financial systems.
Yet, unlike MicroStrategy, KULR remains keenly focused on developing its core business of thermal management and energy storage solutions.
KULR is making strides in key high-growth sectors with innovative solutions and strategic partnerships. Its modular battery pack, the KULR ONE Air, is tailored for eVTOL aircraft, integrating its proprietary Thermal Runaway Shield (TRS) technology to enhance safety by preventing overheating or fires during flight. Notably, Swiss electric propulsion company H55 Inc. has incorporated KULR's TRS technology into its systems, highlighting KULR's role in advancing electric aviation.
In the nuclear sector, KULR is expanding into small modular reactors, partnering with an undisclosed nuclear fusion company to design carbon fiber cathodes for laser-based fusion systems. These cathodes leverage materials originally developed for aerospace and defense, including those used in NASA’s Mars Rover missions.
Speaking of NASA, KULR's advanced thermal management technology, employed in the Mars 2020 Perseverance Rover's SHERLOC instrument, underscores its legacy of innovation. The company is now preparing for large-scale production of KULR ONE Space batteries by 2025 to serve the growing satellite market, including CubeSats and satellite constellations. NASA has certified KULR’s M35A battery cells for human spaceflight, and the company recently secured an initial $1 million order for 20793-rated battery systems from South Korea's Nara Space, with potential expansion to $1.5 million.
Thus, KULR's cutting-edge technologies and strategic focus position it as a key player in electric aviation, nuclear innovation, and space exploration.
#3 Analyst Opinion
Unsurprisingly, due to its penny stock status, KULR stock has limited coverage from the analyst community. Two analysts have unanimously attributed a rating of “Strong Buy” for the stock with a mean target price that has already been surpassed. The high target price of $7 denotes upside potential of about 50% from current levels.
