KULR’s Bitcoin reserves shrink by 90%, exits with heavy losses: where do corporate-held crypto strategies go from here?

On July 24, 2026, on-chain data analytics showed that KULR Technology, a U.S. stock-listed company, transferred 145.8 BTC (about $9.45 million) to Coinbase Prime. After this transaction, the company’s Bitcoin reserves plummeted from 1,021 BTC from three months earlier to just 100 BTC, corresponding to a market value drop from about $101 million to about $6.47 million.

This was not a routine portfolio reshuffle. KULR’s average cost basis for accumulating Bitcoin was about $98,923, while the average sell-off price over the past three months was only $74,368, leaving a gap of as much as $24,555. Cumulative realized losses were about $22.62 million. For a company that, in December 2024, boldly announced allocating up to 90% of its excess cash reserves to Bitcoin, this is a total strategic collapse.

Why KULR’s Bitcoin treasury strategy collapsed from its narrative peak

On December 4, 2024, KULR Technology officially announced the launch of its Bitcoin treasury strategy, promising to allocate up to 90% of the company’s excess cash reserves to Bitcoin investments. At that time, MicroStrategy (later renamed Strategy)’s Bitcoin holdings strategy was being treated as a benchmark by the market, and a Bitcoin treasury became a new narrative for listed companies to boost valuation and draw capital market attention.

KULR’s accumulation pace was quite aggressive. On January 4, 2025, the company completed its first purchase of 213.43 BTC at a weighted average price of about $98,393.58. After that, over the following months, KULR continued to add: holdings reached 610.3 BTC in February, increased by 56.3 BTC to 668.3 BTC in March, hit 800 BTC in May, and further rose to 920 BTC in June. In July 2025, KULR announced its holdings reached 1,021 BTC, with a total value of about $101 million and a weighted average cost of about $98,923.

From the announcement of the strategy to reaching the holding peak, KULR took only about seven months. This rapid accumulation closely tracked optimistic expectations about Bitcoin’s price—Bitcoin was in an upward channel during the first half of 2025, and KULR even recorded sizable unrealized gains at one point. However, when market trends reversed, the aggressive position management strategy exposed its fragility.

How $22.62 million in losses was confirmed step by step

KULR’s reduction was not a one-time full liquidation, but a gradual process lasting nearly three months. Starting around April 2026, the company continued transferring Bitcoin to Coinbase Prime—an exchange and custody platform designed for institutional clients—and completed the selling.

Each reduction confirmed the losses. The price spread between the cost basis ($98,923) and the reduction average ($74,368) of more than $24k implied an average loss of about $24,555 per BTC sold. Of the 1,021 BTC holdings, aside from the final retained 100 BTC, the remaining 921 BTC exited at a loss. Cumulative realized losses totaled about $22.62 million.

This loss magnitude dealt a material blow to KULR’s financials. Public data showed KULR’s revenue for full-year 2025 was about $16.10 million; for Q1 2026 revenue was about $24k, but net losses reached $28.12 million. A $22.62 million Bitcoin trading loss is equivalent to 140% of its full-year revenue. For a small-to-mid-cap listed company still in its growth stage, this is no small setback.

From $101 million to $6.47 million: a rapid contraction of positions

KULR’s Bitcoin holdings changes can be illustrated by a set of data:

• July 2025 (peak): 1,021 BTC, market value about $101 million
• Around April 2026: began gradual selling
• July 24, 2026: 100 BTC, market value about $6.47 million
• Position reduction magnitude: more than 90%
• Cumulative realized losses: about $22.62 million

Even more noteworthy are changes at the signaling level. Based on on-chain data analytics, KULR has taken down the Bitcoin holdings page on its official website and stopped posting Bitcoin-related content on social media. For a listed company that previously marketed the Bitcoin treasury as a core narrative to the market, these actions suggest a substantive abandonment at the strategy level, not merely a position adjustment.

A split between mainstream players and peripheral participants: KULR vs. Strategy

Putting KULR’s experience into a broader industry picture, the divergence trend is especially clear.

As of July 2026, Strategy (formerly MicroStrategy), the world’s largest corporate Bitcoin holder, held 843,775 BTC, with cumulative investment of about $63.69 billion and an average cost of about $75,476. Based on then-current market prices, its holdings still faced significant unrealized losses. But Strategy, backed by its enormous holdings scale, continuous financing capacity, and years-long market reputation, continues to maintain the narrative framework of a Bitcoin treasury.

Meanwhile, the total market value of holdings held by global Bitcoin treasury companies fell from $396 billion to $272 billion since October 2025, evaporating more than $4.85M. However, during the same period, the total amount of Bitcoin held by these companies increased from 953k BTC to 1.14 million BTC—more companies bought, but the asset price decline swallowed market value.

KULR’s situation sharply contrasts with the trend above. It was not simply bearing unrealized losses passively; it proactively cut positions at lows, confirmed losses, and exited. This “buy high, sell low” operating pattern is fundamentally different from Strategy’s stance of holding on even when facing floating losses. For the capital markets, this difference means the Bitcoin treasury narrative is undergoing a stringent round of selection—only players with sufficient scale, financing ability, and strategic resolve can stay at the table.

Structural cracks in the Bitcoin treasury narrative are widening

KULR’s case is not an isolated incident. In the first half of 2026, the Bitcoin treasury company group is undergoing a systematic stress test.

In Q1 2026, Strategy recorded $14.46 billion in unrealized losses and posted GAAP net losses of as much as $12.54 billion. Japan-listed Metaplanet, in Q1 of fiscal 2026, recorded an ordinary loss of about $725.6 million due to an approximately 24% drop in the Bitcoin price. Another Nasdaq-listed company, Empery Digital, bought 1,400 BTC at an average price of about $117,500 and then sold at around $62,200.

These cases point to a structural reality: as a corporate strategy, the viability of a Bitcoin treasury highly depends on the directional trend of Bitcoin’s price. When the market is in an upcycle, Bitcoin reserves can amplify a company’s asset-side resilience and even become a highlight in financial reports. Once the market turns, unrealized losses directly hit the income statement, while forced position reductions further confirm losses and erode shareholder equity.

KULR’s choice—clearing out and exiting while in loss—reveals a core dilemma for small-to-mid listed companies executing a Bitcoin treasury strategy: they lack Strategy’s financing capacity and market credibility to “hold through” the cycle. When Bitcoin prices fall and market sentiment cools, these companies face a bind—continuing to hold means enduring ongoing unrealized losses and accounting pressure, while selling means recognizing losses and giving up the narrative. KULR chose the latter.

Three takeaways from Bitcoin reserve listed companies

KULR’s reduction journey from 1,021 BTC to 100 BTC offers several lessons for other listed companies considering or executing a Bitcoin treasury strategy.

First, position management and risk tolerance must match. KULR allocated as much as 90% of excess cash reserves to a single asset and disclosed almost no hedging or risk management mechanisms during the accumulation period. When Bitcoin’s price fell from its 2025 highs, this concentration risk rapidly transformed into material losses. For small- and mid-cap companies, betting the vast majority of liquidity reserves on a single volatile asset is, in essence, placing an asset-liability statement wager on market direction.

Second, there are rigid constraints between strategic narrative and financial reality. The narrative value of a Bitcoin treasury is built on expectations of continued accumulation or at least continued holding. Once a company is forced to reduce holdings due to liquidity pressure or risk considerations, the narrative collapses—and that, in turn, further undermines market confidence. KULR taking down the Bitcoin page on its website and stopping related posts on social media is, in essence, actively severing the narrative chain it previously built.

Third, the entry timing determines strategic room. KULR’s accumulation mainly occurred in the first half of 2025, at an average cost of about $98,923—right within the historical high-price range of Bitcoin. When the market entered a downcycle from the second half of 2025 through 2026, the positions accumulated at highs had almost no window to exit profitably. The choice of entry timing largely determines the strategic options available to a company when the market reverses.

Summary

KULR Technology’s Bitcoin treasury strategy went from high-profile announcement to nearly full exit over about 19 months. The change from 1,021 BTC to 100 BTC, the cost-to-exit spread from $98,923 to $74,368, and cumulative realized losses of $22.62 million—these figures together depict a complete cycle of strategic collapse.

The value of this case lies not only in its own financial losses, but also in providing a clear stress-test sample for the narrative of Bitcoin treasury as a corporate strategy. When a strategy highly prized during an upcycle meets a trend reversal, small-to-mid participants without scale advantages, financing capability, and risk management mechanisms will be the first to absorb the shock. As a corporate strategy, Bitcoin treasury is moving from a “narrative-driven” phase into a “strength test” phase—and KULR’s experience shows that not all players can pass this test.

FAQ

Q: How much total loss did KULR Technology incur?

Based on on-chain data, KULR’s average cost basis for buying Bitcoin was about $98,923, its average sell price was about $74,368, and its cumulative realized losses were about $22.62 million.

Q: How much Bitcoin does KULR have left now?

As of July 24, 2026, KULR’s Bitcoin reserves have dropped to 100 BTC, with a market value of about $6.47 million.

Q: Why did KULR sell down Bitcoin?

KULR has not publicly issued an official statement regarding this. But on-chain data shows it has continued to sell down, taken down the Bitcoin holdings page on its official website, and stopped posting related content on social media—indicating the company has effectively abandoned its Bitcoin treasury strategy.

Q: Are other listed companies also selling down Bitcoin?

Yes. In July 2026, Strategy sold 3,588 BTC. Multiple Bitcoin treasury companies are facing varying degrees of position pressure. The total market value of holdings held by global Bitcoin treasury companies has evaporated by more than $953k since October 2025.

Q: Does the Bitcoin treasury strategy still have a future?

Bitcoin treasury as a corporate strategy has not fully failed, but it is undergoing structural differentiation. Large players with scale advantages and ongoing financing capability, such as Strategy, still maintain this framework. However, KULR’s case shows that small-to-mid companies lacking sufficient risk tolerance and capital reserves face significant risks when executing this strategy.