The largest corporate Bitcoin treasury firm in China, Next Technology Holding, has disclosed plans to sell up to $500 million in common stock focused on growing its Bitcoin reserve and other company initiatives.
In a Monday filing to the U.S. Securities and Exchange Commission, the Nasdaq-listed software company said the proceeds will be used for “general corporate purposes,” however, it stated that the acquisition of Bitcoin continues to be an area of focus.
The announcement makes Next Technology one of the most aggressive proponents of Bitcoin amongst publicly traded firms and will support Next Technology’s efforts to further entrench its position in the increasingly growing digital asset treasury space.
Current Bitcoin Reserves and Potential Expansion
Currently, Next Technology is holding 5,833 Bitcoin worth about $671.8 million, which makes it the 15th largest Bitcoin seller globally, according to BitcoinTreasuries.net.
This puts it ahead of well-known companies like KindlyMD, Semler Scientific, and GameStop.
If the company assigned half of the stock sale proceeds (valued at $500 million) to buy Bitcoin, they could buy approximately 2,170 more BTC at current prices, putting their total BTC holdings beyond 8,000.
This would not only strengthen its treasury strategy but bring the company more closely into the ranks of premier corporate Bitcoin holders.
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A Growing Trend Among Public Companies
Next Technology’s strategy reflects a larger trend among public corporations globally that have turned to equity sales, debt offerings in the form of convertible debt, perpetual preferred stock, and SPAC offerings in order to invest in Bitcoin.
The number of public companies holding Bitcoin has risen from approximately 100 companies earlier this year to 190 companies, with their combined allocations of more than 1 million BTC, or over 5% of the supply of Bitcoin.
Industry titan Michael Saylor’s MicroStrategy remains the leader in that area, holding almost 639,000 BTC.
Nevertheless, the likes of Next Technology and Japan’s Metaplanet are quickly establishing themselves as formidable competitors in this newly minted corporate race for Bitcoin.
Also Read: Metaplanet Expands Bitcoin Holdings With 775 BTC Worth $90M, Total Holdings Valued at $2.2B
Market Reaction and Financial Impact
While the announcement was audacious, investors reacted in a cautious fashion. Google Finance noted that shares of Next Technology (NXTT) dropped 4.76% to $0.14 on Monday and slipped further by 7.43% on after-hours trading.
However, the company’s early Bitcoin scheme has already been extremely profitable.
Since its first purchase of 833 BTC in December 2023 and another 5,000 BTC on March 28, the company has recognized a paper profit of 266.7% based on an average purchase price of $31,386 per Bitcoin.
The AI software company, which primarily operates in the U.S., Hong Kong, and Singapore, has benefited from Bitcoin’s upward price momentum and sees room for more advances, despite recent negative movements on the stock market.
Also Read: Mexico’s Billionaire Ricardo Salinas Pliego Boosts Bitcoin Holdings From a Previous 70% Investment
Strategic Outlook and Industry Updates
In contrast to rivals like Metaplanet and Semler Scientific, which have proposed bold plans to acquire specific amounts by 2027 of 210,000 BTC and 105,000 BTC.
Respectively, Next Technology is taking a more open-ended route, stating that it will “monitor market conditions” and not specify a Bitcoin target.
This approach of addressing conditions month-by-month illustrates prudent caution in unpredictable markets, while also permitting opportunities for strategic accumulation.
Other firms in the bitcoin treasury space remain active. Japan’s Remixpoint announced it had raised $215 million to increase its holdings to 3,000 BTC, according to UnoCrypto.
Also, on the same note, Norway’s sovereign wealth fund NBIM reported a substantial rise in indirect Bitcoin exposure to 7,161 BTC.
Altogether, these events demonstrate the rapidly changing dynamics of global institutions purchasing Bitcoin for their balance sheets and the growing trend toward digital assets as a reserve.
Also Read: The Blockchain Group Partners with TOBAM to Raise $342 Million for Scaling Bitcoin Holdings