Next Technology Holding aims to expand Bitcoin reserves despite share price decline
Beijing — Next Technology Holding, China’s largest corporate Bitcoin treasury firm, has filed plans to sell up to $500 million in common stock to fund new Bitcoin purchases and other corporate purposes. The move underscores the growing trend of public companies using equity financing to increase their exposure to the world’s largest cryptocurrency.
In a filing to U.S. regulators, the Nasdaq-listed company stated: “We intend to use the net proceeds from the sale of any securities offered under this prospectus for general corporate purposes, including, but not limited to, the acquisition of Bitcoin.”
Expanding corporate Bitcoin reserves
Next Technology currently holds 5,833 Bitcoin worth $671.8 million, making it the 15th largest Bitcoin treasury firm globally, according to BitcoinTreasuries.NET. The company has already seen strong returns, with an average purchase cost of $31,386 per Bitcoin translating into a 266.7% paper profit.
If even half of the new $500 million allocation is directed toward Bitcoin, analysts estimate the company could purchase an additional 2,170 BTC, raising its reserves above 8,000 Bitcoin.
“Allocating more capital into Bitcoin is a strategic play to hedge against inflation and align with the trend of digital asset adoption among public firms,” noted one industry analyst.
Market reaction and volatility
Despite the bullish signal for Bitcoin accumulation, Next Technology’s stock (NXTT) fell 4.76% on Monday to $0.14 and slid another 7.43% in after-hours trading, according to Google Finance.
Still, the firm has reaped significant gains since its initial purchase of 833 Bitcoin in December 2023 and an additional 5,000 Bitcoin on March 28, 2024.
Part of a broader corporate trend
The company’s move aligns with a wider shift: 190 publicly listed firms now hold Bitcoin, up from fewer than 100 at the start of the year. Collectively, they control over 1 million BTC — more than 5% of total supply.
While Michael Saylor’s Strategy remains the largest holder with 639,000 Bitcoin, Next Technology’s approach of “monitoring market conditions” suggests a flexible, month-by-month strategy rather than fixed accumulation targets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
