China’s largest corporate Bitcoin treasury firm, Next Technology Holding, says it is looking to sell up to $500 million of its common stock to buy more Bitcoin and for other purposes.
“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,” the software company said in a filing to the US securities regulator on Monday.
Next Technology currently holds 5,833 Bitcoin worth $671.8 million — making it the 15th largest Bitcoin treasury firm — higher than David Bailey’s KindlyMD, Semler Scientific, and GameStop, BitcoinTreasuries.NET data shows.
Allocating even half of the $500 million offering to Bitcoin would allow the Nasdaq-listed company to scoop up another 2,170 Bitcoin at current prices, bringing its total to above 8,000 Bitcoin.
Next Technology is part of a broader Bitcoin treasury adoption trend where public companies have turned to equity, debt through convertible notes, perpetual preferred stock offerings, and even special-purpose acquisition companies to fund their Bitcoin purchases.
There are currently 190 publicly listed companies holding Bitcoin on their balance sheets, up from fewer than 100 to start the year, and their combined holdings passed 1 million Bitcoin earlier this month — representing over 5% of Bitcoin’s current supply.
Michael Saylor’s Strategy continues to lead the pack with nearly 639,000 Bitcoin marked on its balance sheet.
Next Technology’s shares fall on the news
Next Technology (NXTT) shares fell 4.76% to $0.14 on the Nasdaq on Monday and another 7.43% in after-hours when the news was announced, Google Finance data shows.
However, it has made a significant paper gain on its Bitcoin holdings since buying its first batch of 833 Bitcoin in late December 2023 and another 5,000 Bitcoin purchase on March 28.
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The AI-powered software firm — which offers most of its services in the US, Hong Kong, and Singapore — has purchased its Bitcoin at an average cost of $31,386 for a paper profit of 266.7%.
Next Technology is taking a month-by-month approach
Next Technology said it hasn’t set a target for the amount of Bitcoin it seeks to hold, stating in the filing that it would “monitor market conditions.”
The strategy contrasts with the likes of Metaplanet and Semler Scientific, which have announced plans to amass 210,000 Bitcoin and 105,000 Bitcoin — 1% and 0.5% of Bitcoin’s supply — before the end of 2027.
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