Next Technology Eyes $500M Stock Sale for Bitcoin Buys
Chinese Bitcoin Firm Targets $500 Million Stock Sale For BTC
Next Technology Holding, a leading corporate Bitcoin treasury firm based in China, is planning to sell up to $500 million in common stock. The primary goal? To acquire more Bitcoin, alongside other general corporate purposes.
In a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, the Nasdaq-listed software company stated that the net proceeds from the sale would be used for a variety of corporate needs, with a significant portion earmarked for Bitcoin acquisition.
Currently, Next Technology holds 5,833 Bitcoin, valued at approximately $671.8 million. This places them as the 15th largest corporate Bitcoin treasury, surpassing firms like KindlyMD and Semler Scientific, according to data from BitcoinTreasuries.NET.
If Next Technology allocates half of the $500 million to Bitcoin, they could potentially acquire another 2,170 Bitcoin at current market prices, bringing their total holdings above 8,000 BTC.
Next Technology's move reflects a broader trend of publicly listed companies incorporating Bitcoin into their treasury strategies. These companies are utilizing various methods, including equity sales and debt financing, to fund their Bitcoin purchases.
The number of publicly listed companies holding Bitcoin has surged to 190, a significant increase from the start of the year. Collectively, these companies hold over 1 million Bitcoin, representing more than 5% of Bitcoin's circulating supply.
Michael Saylor’s Strategy remains the frontrunner, holding nearly 639,000 Bitcoin.
Next Technology's Shares Fall Following Announcement
Following the announcement, Next Technology (NXTT) shares experienced a decline. Shares fell by 4.76% to $0.14 on the Nasdaq on Monday, with an additional 7.43% drop in after-hours trading, according to Google Finance data.
Despite the recent dip, the company has seen considerable gains on its Bitcoin holdings since its initial purchase of 833 Bitcoin in late December 2023, followed by an additional 5,000 BTC purchase on March 28.
The company, which provides AI-powered software services primarily in the US, Hong Kong, and Singapore, has acquired its Bitcoin at an average cost of $31,386, resulting in a paper profit of 266.7%.
Flexible Bitcoin Strategy
Next Technology has adopted a flexible approach to its Bitcoin holdings, stating that it will “monitor market conditions” to guide its acquisition strategy. No target has been set for the total amount of Bitcoin it seeks to hold.
This differs from other companies like Metaplanet and Semler Scientific, which have announced specific targets for Bitcoin accumulation, aiming to amass 210,000 and 105,000 Bitcoin, respectively, by 2027.