KULR Technology has invested $21 million in Bitcoin as part of its strategy to allocate 90% of surplus cash to the cryptocurrency.

KULR, a U.S.-based company which specializes in thermal management solutions mainly for electronic components and batteries, has acquired 217.18 Bitcoin (BTC) for nearly $21 million as part of the company’s Bitcoin Treasury strategy.

In a Thursday press release on Dec. 26, the San Diego-headquartered company said Bitcoins were purchased at an average price of $96,556.53 per BTC. Amid the news, KULR’s shares rose 3.51% on pre-market, per data from Nasdaq.

The purchase follows the company’s earlier announcement of its Bitcoin Treasury strategy, in which it announced allocating up to 90% of its surplus cash to Bitcoin. KULR says the $21 million purchase is the first of ongoing purchases it intends to make going forward. KULR picked Coinbase’s Prime platform to provide custody, USDC, and self-custodial wallet services for its BTC, according to the press release.

KULR chief executive Michael Mo earlier emphasized that Bitcoin’s growing adoption globally was a key factor in the decision, noting that the asset could strengthen the company’s balance sheet while supporting its operational growth.

KULR’s Bitcoin purchase comes amid a broader trend of companies embracing cryptocurrency as part of their financial strategies. Artificial intelligence firm Genius Group recently also announced $4 million in BTC purchases, raising its holdings to 153 BTC as part of its “Bitcoin-first” strategy to allocate 90% or more of its reserves to the cryptocurrency.

Other companies, including MicroStrategy and Nasdaq-listed Acurx, have also expanded their Bitcoin holdings to capitalize on its role as a hedge against inflation and a store of value supporting technological innovation.