Next Technology Holding Plans $500M Stock Sale for Bitcoin Acquisition
China’s largest Bitcoin treasury firm, Next Technology Holding, has announced plans to sell up to $500 million worth of common stock. The proceeds will primarily fund additional Bitcoin purchases, further increasing its cryptocurrency portfolio.
According to a recent filing with the United States Securities and Exchange Commission (SEC), the 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.”
Current Bitcoin Holdings and Future Plans
Next Technology currently holds 5,833 Bitcoin, valued at approximately $671.8 million. This places the company as the 15th largest Bitcoin treasury globally, surpassing firms like KindlyMD and GameStop, according to BitcoinTreasuries.NET.
If half of the $500 million offering is allocated toward Bitcoin at current market prices, Next Technology could add an estimated 2,170 Bitcoin to its portfolio. This acquisition could elevate its total Bitcoin holdings to over 8,000 BTC. The company has not set a specific target for the amount of Bitcoin it aims to amass, stating instead that it will “monitor market conditions.”
A Growing Trend Among Public Companies
Next Technology’s move is part of a larger trend of publicly listed companies increasing their Bitcoin reserves. Data reveals that 190 public companies now hold Bitcoin on their balance sheets, a figure that has doubled since the beginning of the year. Collectively, these companies hold over 1 million Bitcoin, representing more than 5% of the current circulating supply.
Major players lead this trend, with MicroStrategy, headed by Michael Saylor, holding a staggering 639,000 BTC. While Next Technology’s strategy aligns with this growing corporate interest in cryptocurrency, it contrasts with Metaplanet’s more ambitious plan to accumulate 210,000 BTC by 2027.
Stock Impact and Performance
Following the announcement, Next Technology’s shares dipped 4.76% on Monday, closing at $0.14 on the Nasdaq. The price dropped an additional 7.43% in after-hours trading, according to Google Finance data. Despite the short-term dip, the company has seen significant gains on its Bitcoin investments. For instance, its initial Bitcoin purchases in late 2023 and March 2024 have yielded a paper profit of approximately 266.7%.
Invest in Bitcoin Easily
For readers looking to diversify their portfolios or invest in Bitcoin, consider using the Ledger Nano X, a secure cryptocurrency wallet for storing and managing your assets. This top-tier hardware wallet offers peace of mind and advanced security features, perfect for both beginners and experienced investors.
The Takeaway
Next Technology’s bold move to enhance its Bitcoin holdings reflects a growing shift among top public corporations toward cryptocurrency adoption. As firms like Next Technology and MicroStrategy pave the way, Bitcoin’s role as a key financial asset continues to grow, making now an opportune moment for individuals and companies alike to explore this digital currency.
