Next Technology Holding, the largest corporate Bitcoin treasury firm in China, is seeking to sell up to $500 million of its common stock to acquire more Bitcoin and for other uses.
“We plan to utilize the net proceeds from the sale of any securities offered under this prospectus for general corporate purposes, including, but not limited to, acquiring Bitcoin,” the software company stated in a filing with the US securities regulator on Monday.
Next Technology currently possesses 5,833 Bitcoin valued at $671.8 million, positioning it as the 15th largest Bitcoin treasury firm, ahead of David Bailey’s KindlyMD, Semler Scientific, and GameStop, according to BitcoinTreasuries.NET data.
If Next Technology allocates half of the $500 million offering to Bitcoin, it could acquire an additional 2,170 Bitcoin at current market prices, raising its total to over 8,000 Bitcoin.
Next Technology is part of a wider trend of Bitcoin treasury adoption, where public companies utilize equity, debt through convertible notes, perpetual preferred stock offerings, and even special-purpose acquisition companies to finance their Bitcoin acquisitions.
There are now 190 publicly listed companies holding Bitcoin on their balance sheets, an increase from fewer than 100 at the beginning of the year, with their combined holdings surpassing 1 million Bitcoin earlier this month, representing over 5% of Bitcoin’s total supply.
Leading the charge is Michael Saylor’s Strategy, with nearly 639,000 Bitcoin recorded on its balance sheet.
Next Technology’s shares decline following the announcement
Next Technology (NXTT) shares dropped 4.76% to $0.14 on the Nasdaq on Monday, and another 7.43% in after-hours trading following the announcement, according to Google Finance data.
Nevertheless, it has seen substantial paper gains on its Bitcoin holdings since acquiring its initial 833 Bitcoin in late December 2023 and an additional 5,000 Bitcoin on March 28.
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The AI-driven software firm, primarily servicing the US, Hong Kong, and Singapore, has bought its Bitcoin at an average cost of $31,386, yielding a paper profit of 266.7%.
Next Technology is adopting a month-to-month strategy
Next Technology has expressed that it has not established a target for the amount of Bitcoin it aims to hold, indicating in its filing that it will “monitor market conditions.”
This approach contrasts with companies like Metaplanet and Semler Scientific, which have set goals to acquire 210,000 Bitcoin and 105,000 Bitcoin, equating to 1% and 0.5% of Bitcoin’s supply, respectively, by the end of 2027.
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