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KULR Technology Acquires IP To Tap Into $9.6 Billion Digital Mining Sector; $29 Billion Opp By 2027 (NYSE-Amer: KULR)

KULR Technology(NYSE-AMER: KULR) made another big deal. And there's good news and bad news. The bad is that the significance of how it can help transform KULR is staying under the radar. The good news is that investors aware of the deal's potential can and are seizing on a valuation disconnect that's become too big to ignore. And despite the 7% gain since last Monday, investors can expect much more to come. Here's why. 

Most recently, KULR announced acquiring the patented intellectual property ("IP") rights from Centropy AB, giving KULR advanced carbon-fiber-based heatsink technology for high power computing (HPC) applications. Yes, it's technical language. However, for all intents and purposes, shareholders and investors should be fine to know that the IP significantly strengthens KULR's portfolio of thermal management solutions for cloud computing, AI, and crypto mining applications.

They should know another thing as well. KULR expects to unlock that value quickly.

Unlocking Value FromValuable IP

In fact, KULR said that's already happening. They are actively implementing Centropy's cooling solutions into their own technology portfolio, targeting air and liquid-cooling of high-power computing applications, including a reach into crypto mining, cloud computing, and AR/VR simulations.

Keep in mind, KULR is combining Centropy's proprietary processes with its own. Thus, they just made one of its core technologies even better as they seize revenue-generating opportunities from clients needing cooling technology in aerospace, automotive, data centers, and other high-performance applications. Best of all, KULR guided that the added IP provides a dependable tailwind for its HPC technology development interests going forward.

And if it's the mining sector they are targeting, opportunities are massive. Even better, large-scale digital miners need what KULR can offer. Remember, high power computing applications, such as industrial bitcoin mining operations, comprise thousands of computers stacked on shelves in warehouses surrounded by large-scale fans where electricity accounts for upwards of 80% of a miner's operating cost. Cutting that cost sends dollars almost directly to the bottom line.

Those dollars can be substantial. In a current $9.6 billion industry, expected to become a $29 billion one by 2027, even a 10% reduction in cost can send millions to the bottom line. But, KULR may be able to save them much more than that. 

For some, especially the world's largest miners, KULR may be able to save billions in cost over an extended period. Just as important, digital asset miners can mitigate operational risk by utilizing KULR's enhanced technology to conduct operations more efficiently and effectively. In other words, KULR technology can help keep their machines running. And with these computers operating 24/7/365, taking care of both issues simultaneously is more than a wise consideration; it's a necessary one. 

Confidence In KULR

The excellent news for investors is that KULR is expecting to leverage the value of its acquisition sooner than later. And if any company was positioned to take Centropy's innovation to the next level, it's KULR. Of course, that's their intent, with plans to be a conduit for Centropy's cutting-edge technology and advance a complete suite of solutions and innovative thermal management technologies resulting from its other IP acquisitions.

Notably, Centropy recognized the fit well, staking its vested interest in knowing that KULR can leverage its IP and take it to commercialization. And their goals align with investors, with Centropy banking on KULR providing the next level of expertise, maximizing resources to accelerate productization, manufacturing, and commercialization to expedite getting these technologies to mass markets. In their own words, "KULR is the partner to help us get there."

They are correct. KULR is the carbon fiber thermal management technology leader for the most advanced and demanding applications. Already, KULR products are trusted and used by NASA, Lockheed Martin (NYSE: LMT), Andretti Enterprises, and many other well-respected commercial and governmental partners.

Better yet, the fit of Centropy technologies into KULR's is seamless. Thus, watching this deal develop to its full potential, perhaps faster than many expect, should drive shareholder value substantially higher in the process. Remember, milestones reached often become catalysts.

Enhanced Technology, Bigger Deals

Proof of that is happening. KULR recently inked an initial $500,000 deal with Lockheed Martin for its passive propagation resistant ("PPR") battery systems. That deal added to a revenue stream that is already generating record-setting performance. And like its deal with Centropy, this one is expected to have a near-term value-creating impact since the order is for immediate delivery. Best of all, KULR expects the agreement with Lockheed to be the starting point in the partnership, with LTM embracing KULR's technological advancements in PPR energy products for its Advanced Energy Systems.

Hence, as alluded to, they turned a milestone from creating technology into a catalyst. And more are expected, especially with LMT helping create a compelling narrative that KULR technology works. Also, it goes without saying that as an industry leader serving DoD and aerospace customers, LMT chooses its vendors wisely. They certainly wouldn't risk using incapable technology and components to jeopardize their own critical mission to meet the most demanding service applications in the world. Put in shareholder-friendly language, they are validating KULR technology.

And they aren't the only company doing so. Since Q3, KULR announced new partnerships expected to generate significant new revenues in the coming weeks and quarters. Those deals are in motion.

Generating Value Through Working Partnerships

Better yet, they can generate formidable near-term revenue streams. Several deals were made. One is with Heritage Battery Recycling ("HBR") to provide safe transportation of HBR's battery collection operations across North America through its KULR-Tech Safe Case. That deal, by the way, is another validation of KULR technology. Even better, from a business perspective, HBR brings massive near and long-term market opportunities to KULR through their access to over 100,000 customer locations, 2,500 employees, and a fleet of over 1,300 power units, and 108 facility locations across North America.

That potential is turning into dollars. And better, the agreement enhances a services partnership with HBR arising from their merger with Retriev Technologies. Incidentally, the deal between HBR and Retriev created the largest lithium-ion battery recycler in North America. So, while great for them, it's also excellent for KULR by adding to the revenue-generating opportunities from existing e-bike and scooter customer programs related to battery safety. Added terms have KULR expecting to initiate new services providing safe transportation logistics to Retriev's battery collection operations throughout North America. Hence, it turned an already great deal into an excellent one. There's more to like.

KULR also entered a deal with Clarios, the largest global producer of lead-acid batteries. That one is expected to help generate a potentially massive revenue stream by targeting opportunities in the U.S. Department of Energy lithium-ion battery life cycle initiative. That program develops processes to safely manage and reuse lithium-ion batteries and their chemical elements in the United States. Notably, with the millions, potentially billions, of lithium-ion batteries in the market, that initiative's outcome can lead to a potentially exponential increase in new business for KULR.

Those deals, while impressive on their own, add to the special permits KULR earned from the U.S. Department of Transportation ("DoT") authorizing the transportation of damaged, defective, and recalled ("DDR") lithium-ion cells, batteries, or lithium metal cells contained in or packed with KULR's proprietary Thermal Runaway Shield ("TRS") packaging. At the risk of sounding redundant, those permits are another validation of its core technology. Moreover, they generate revenue, and potentially a lot of it. Also, investors should be impressed to know that KULR is one of a tiny handful of companies that earned them. In other words, the company is attracting the right and most critical eyes of management.

Still, there's plenty more in its pipeline to suggest KULR's growth curve will steepen.

Impressive Client List Of Global Leaders

That includes KULR having a global client list that needs what KULR sells. In addition to LMT, KULR has business relationships with NASA and its Perseverance Mars 2020 Rover, Andretti Enterprises, Leidos (NYSE: LDOS), and Marshall Space Center. Having one of those as a client would be impressive; for KULR, it's only a small representation of its global customer list.

Other global names and agencies are on-board with KULR as well, utilizing its state-of-the-art thermal management technologies. And that's not by coincidence. KULR is the top pick because they created, and more importantly, can implement, next-generation battery safety solutions that make batteries cooler, more efficient, safer, and lighter for usage. Furthermore, clients are drawn to KULR from its technologies ability to mitigate the risk of fire and explosion in lithium-ion batteries.

Remember, KULR isn't an early-stage technology development company. They are already in the field. More impressively, its technology made it to another orbit as part of the Perseverance Mars 2020 rover. Not many, if any, other micro-cap companies can make a similar claim. Still, while KULR's ability to impress NASA is an admirable accomplishment, it's just one of many.

Moreover, its technology should find no shortage of interest. The lithium-ion battery market is expected to eclipse $116 billion within ten years and $300 billion by 2040. And as these high-powered compact energy storage devices fill a need to power everything from battery-operated tools to hypersonic missiles, they probably won't proliferate without some form of safety measures embedded. The great news on that front is that there isn't much of the "some form of it" available outside of KULR's walls. KULR's IP portfolio is robust and protects methods and processes to create and embed the most advanced safety features available. Its newest IP fortifies them even more.

Capital Strength To Deliver In Q4 And 2022

Perhaps best of all, from an investor's perspective, KULR isn't gliding into 2022; they are charging it. And they have a business tailwind to accelerate that pace. Last month, KULR announced a more than 300% surge in comparative Q3 revenues. Guidance calls for more of the same. Much more.

In fact, KULR expects an appreciable commercialization tailwind in each of its core business segments. That's a result of investing in its divisions to generate greater value than even its own prior bullish guidance expected. Notably, KULR highlighted a ramp in new partnerships and product development initiatives that position Q4 to be its best ever.

Hence, at current levels, especially with several new deals in place, KULR stock is more than attractive on a valuation basis; it's compelling. It can be said that if KULR did nothing in Q4 to add to its business pipeline, current valuations appreciably undervalue the company's projects, revenue growth, and IP portfolio. But that clearly isn't the case. News last week showed KULR's ambitions are well intact, reaching into yet another market that has multi-million potential. Moreover, following guidance, which is habitually accurate, KULR will do much more in 2022.

Thus, the valuation disconnect between share price and performance won't last forever. Frankly, it may not last another week. Despite the December trading shuffle, there is simply too much in the hopper to keep KULR stock down for much longer. And those following KULR know that when they talk, its shares have a tendency to move sharply higher. Hence, with several updates expected, investment consideration is indeed timely.

 

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to ten-thousand dollars cash via wire transfer by a third party to produce and syndicate content for KULR Technology Group. Inc. for a period of one month. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website.

The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. 

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