Cryptocurrency Information Bureau News: KULR invests $3 million in Bitcoin! We bring you the latest information on strengthening our strategy. #Bitcoin #CryptocurrencyNews #KULR
Video explanation
[For beginners] KULR Technology Group announces $450 million in funding for Bitcoin investment! What does this mean?
Hello, I'm John, your Blockchain Navigator!
Recently, you may have heard the word "Bitcoin" a lot when watching the news. I'm sure there are many people who think, "It seems kind of difficult..."
Today, we have picked up some big news about Bitcoin announced by an American company called KULR Technology Group (hereinafter referred to as KULR). Don't worry about the technical terms! We will explain it in a digestible way so that anyone can understand, so please relax and read it.
What kind of company is KULR?
First, let me give you a brief introduction to KULR, the main subject of this news.
KULR is a technology company based in the United States,"Heat management technology"This is a technology that prevents machines and electronic components from getting too hot and efficiently controls heat.
For example, this heat management is very important for the safe operation of smartphones, personal computers, and electric car batteries that we use every day. KULR is demonstrating its technological capabilities in a variety of fields, including space development and cutting-edge electronic devices. Why is such a high-tech company paying attention to Bitcoin? That's what makes this news interesting.
What is an "ATM offering" and how do they collect money?
The news article said, "KULR to conduct $3 million ATM offering." Some of you may have imagined an automated teller machine at a bank when you suddenly saw the word "ATM." However, the ATM in this case has a slightly different meaning.
In this case, "ATM" is"At-The-Market Offerings"It is an abbreviation for "shareholders' equity," and refers to one of the ways that a company can raise money. Specifically, it has the following mechanism.
- The company is new"Stocks"(the right to own part of a company).
- Instead of selling the stocks all at once, we will look at the market situation andI'll sell them little by little at the price we have at the time..
- It is so named because the way you can obtain funds when you need them and in the amount you need is similar to withdrawing cash from a bank ATM.
Using this method, KULRUp to $3 million (about 450 billion yen in Japanese yen! *Calculated at 1 yen to the dollar)They announced plans to raise a huge amount of money. That's a huge amount!
By the way, this fundraising will not be handled by KULR alone; it will be supported by financial experts Cantor Fitzgerald and Craig Hulme Capital Group (professional companies that help companies raise funds, similar to investment banks and securities firms).
What is the "Bitcoin Treasury Reserve" for?
So, what exactly will KULR use the money it is trying to raise through this "ATM offering" for?
According to the news, the purpose is"Bitcoin Financial Reserve"Apparently, this is to increase
"Financial reserve" sounds like a rather formal term, but in simple terms it is"Company piggy bank"Think of it like this. Many companies have currency issued by a country, such as Japanese yen or US dollars (called "legal tender"), in their bank accounts as savings.
KULR will use the money as part of its "company savings" or with newly raised funds.Buy and hold digital assets such as BitcoinIn other words, they plan to hold a portion of the company's money in the form of Bitcoin.
So why would a company hold Bitcoin as an asset? There are a few possible reasons:
- Expectations for future value increases: I think the price of Bitcoin may go up in the future.
- Asset Diversification: I want to diversify my risk by holding not only dollars and yen, but also a new type of asset called Bitcoin.
- Inflation Prevention: This is to prepare for the phenomenon of "inflation," in which the value of legal tender effectively decreases due to rising prices.
It is likely that KULR took these possibilities into consideration when deciding to add Bitcoin to the company's asset portfolio.
What does this news have to do with us?
You may be wondering, "Okay, so KULR is buying Bitcoin, but what does that have to do with us?"
There are several implications this news may have for us.
- Growing Corporate Interest in Bitcoin: It is very interesting that a publicly listed company like KULR (a company with social credibility whose stocks are traded on the stock market) is trying to treat Bitcoin as a legitimate asset. This may indicate that Bitcoin is not just a passing fad, but is becoming something that companies cannot ignore.
- Impact on Bitcoin's credibility: If the trend of companies holding Bitcoin spreads, it is possible that Bitcoin itself will become more trustworthy and well-known. The image of it being "suspicious" may fade, and it may come to be recognized as a more common asset.
- Market impact: An increase in the number of large buyers could potentially affect the price of Bitcoin (although of course, prices fluctuate based on a variety of factors, so this is not the only factor that determines the price).
Of course, Bitcoin is characterized by its large price fluctuations (high price fluctuations), so there are risks involved in a company holding it as an asset. KULR is thought to have fully understood this point before making this strategic decision.
A word from John
This news from KULR may have been a topic that even those who have been wondering "What is Bitcoin?" may feel a little closer to home. It is a sign of the changing times that high-tech companies are turning their attention to a new asset called Bitcoin with an eye to their own future. Perhaps this will inspire other companies to make similar moves. Let's continue to keep an eye on how Bitcoin and blockchain technology will affect our lives and the economy!
This article is based on the following original articles and is summarized from the author's perspective:
KULR Technology Group Announces $300 Million ATM Offering To
Invest in Their Bitcoin Treasury