Next Technology Holding Seeks $500 Million Through Stock Sale to Boost Bitcoin Holdings
Next Technology Holding, China’s largest corporate Bitcoin treasury firm, has announced plans to raise up to $500 million by selling common stock. The proceeds will be used for general corporate purposes, including acquiring additional Bitcoin, according to a filing submitted to the U.S. Securities and Exchange Commission on Monday.
Current Bitcoin Holdings and Market Position
Next Technology currently holds 5,833 Bitcoin, valued at approximately $671.8 million, positioning it as the 15th largest corporate Bitcoin treasury globally. This places it ahead of companies such as KindlyMD, Semler Scientific, and GameStop, based on data from BitcoinTreasuries.NET.
If the company allocates even half of the $500 million from the stock sale towards Bitcoin purchases, it could acquire around 2,170 additional Bitcoin at current market prices, potentially increasing its total holdings beyond 8,000 coins.
Context Within Broader Corporate Bitcoin Adoption
The firm’s move aligns with a growing trend among public companies leveraging equity offerings, convertible notes, and special-purpose acquisition companies to fund Bitcoin acquisitions. As of June 2024, nearly 190 publicly traded firms hold Bitcoin on their balance sheets, a significant rise from fewer than 100 at the start of the year. Collectively, these companies hold over 1 million Bitcoin, representing more than 5% of the total Bitcoin supply.
Michael Saylor’s MicroStrategy remains the largest corporate holder, with close to 639,000 Bitcoin.
Market Reaction and Financial Performance
Following the announcement, Next Technology’s shares (ticker: NXTT) fell 4.76% to $0.14 during regular trading on Monday and declined an additional 7.43% in after-hours trading, according to Google Finance data.
Despite the recent share price drop, the company has realized substantial paper gains on its Bitcoin holdings. Since acquiring its initial 833 Bitcoin in December 2023 and a subsequent purchase of 5,000 Bitcoin in late March, Next Technology’s average Bitcoin cost basis stands at $31,386, reflecting a paper profit of approximately 266.7% as of now.
Flexible Bitcoin Acquisition Strategy
Unlike some firms that set explicit Bitcoin accumulation targets, Next Technology has stated it will adopt a measured, market-responsive approach. The company has not committed to a specific Bitcoin holding goal, indicating it will monitor market conditions to guide future purchases.
This contrasts with companies like Metaplanet and Semler Scientific, which have publicly announced plans to acquire 210,000 and 105,000 Bitcoin respectively by the end of 2027, representing significant shares of Bitcoin’s total supply.
FinOracleAI — Market View
Next Technology’s proposed $500 million equity raise signals a commitment to expanding its Bitcoin treasury, likely appealing to investors bullish on cryptocurrency exposure. However, recent share price declines reflect market caution, possibly due to dilution concerns or broader equity volatility.
The flexible, market-dependent acquisition strategy mitigates risk from Bitcoin price fluctuations but may limit rapid scale-up compared to firms with fixed targets. Investors should monitor Bitcoin price trends, Next Technology’s deployment of raised capital, and broader market sentiment toward crypto-related equities.
Impact: positive
