KULR Technology Group experienced a notable decrease in stock value due to a red bottom line and a revenue shortfall. The company’s stock price dropped by over 13% during the last trading day of the week, contrasting with a 0.7% increase in the S&P 500 index.
For the first quarter of the current year, KULR’s revenue rose by 40% to $2.45 million. However, the company’s net loss significantly widened, reaching $18.8 million ($0.07 per share), compared to a deficit slightly over $5 million in the previous year.
Analysts had projected a higher revenue figure of $3 million and had aligned with the actual net loss figure of $0.07 per share. The increased net loss was largely attributed to KULR’s involvement in Bitcoin mining and purchasing, resulting in an unrealized loss of $9.7 million for the quarter. Additionally, higher selling, general, and administrative expenses, along with increased research and development costs, contributed to the financial outcome.
In the earnings release, KULR’s CFO, Shawn Canter, expressed confidence in the company’s cryptocurrency activities, stating they remain committed to their Bitcoin treasury strategy despite short-term price changes. However, there might be concerns among investors regarding the company’s involvement with Bitcoin, given its potential impact on the financial stability.
