Why KULR Technology Group Stock Flopped on Friday

A vivid red number on the bottom line and a revenue miss were the factors pushing down KULR Technology Group (NYSEMKT: KULR) stock on the last trading day of the week. The company's share price eroded by more than 13% across the session, comparing most unfavorably to the S&P 500's (SNPINDEX: ^GSPC) rise of 0.7%.

Fundamentals veered off in two very different directions

For its first quarter of this year, KULR managed to grow its revenue by 40% to $2.45 million. Going in quite the opposite direction was the company's bottom-line result; its net loss deepened considerably, to $18.8 million ($0.07 per share) from the year-ago deficit of slightly over $5 million.

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On average, analysts tracking the battery technology specialist were projecting a notably higher revenue figure of $3 million. Their consensus of $0.07 for net loss was in line with the actual number.

The steeper net loss was due in large part to KULR's embrace of Bitcoin mining and purchasing; it booked an unrealized loss on its activities with the cryptocurrency totaling $9.7 million during the quarter. Relatively higher selling, general, and administrative (SG&A) and research and development (R&D) expenses also played a part.

Continued confidence in crypto

In its earnings release, KULR quoted CFO Shawn Canter as saying of its crypto activities that "we remain steadfast in our BTC treasury strategy and look past these short-term changes in price."

Investors might not be as confident as the executive about the company's involvement with Bitcoin. Personally, I'd be worried that the company's finances might be disproportionally affected by the cryptocurrency. Shareholders are right to be concerned, in my view.

Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.