Next Technology Plans $500 Million Stock Sale to Expand Bitcoin Holdings

China’s largest corporate Bitcoin treasury firm, Next Technology Holding, has revealed plans to raise up to $500 million through a common stock offering, aiming to buy more BTC and fund other corporate needs. 

The Nasdaq-listed software company disclosed in a filing to the U.S. Securities and Exchange Commission on Monday that it intends to use the net proceeds for “general corporate purposes, including, but not limited to, the acquisition of Bitcoin.”

Next Technology currently owns 5,833 BTC valued at about $671.8 million, making it the 15th largest BTC treasury firm. If even half of the planned $500 million offering is allocated to BTC, the firm could acquire an estimated 2,170 additional coins at current prices, pushing its total stash beyond 8,000 BTC.

Growing Trend of Corporate Bitcoin Treasuries

Next Technology’s move reflects a broader trend among public companies adopting Bitcoin as a strategic reserve asset. Across the globe, firms are turning to equity raises, convertible notes, preferred stock offerings, and special-purpose acquisition companies to fund cryptocurrency purchases.

The number of publicly listed companies holding BTC has surged to 190, more than doubling from fewer than 100 at the start of the year. Their combined holdings recently surpassed 1 million BTC, which represents over 5% of the current supply. 

Michael Saylor-led Strategy continues to dominate Bitcoin holdings, reporting nearly 639,000 BTC on its balance sheet.

Market Reaction and Financial Gains

Despite the ambitious plan, Next Technology’s stock price reacted negatively. Shares closed down 4.76% to $0.14 on the Nasdaq Monday and dropped another 7.43% in after-hours trading, according to Google Finance.

The market dip comes even as the company enjoys substantial paper profits on its Bitcoin strategy. Next Technology first purchased 833 BTC in December 2023, followed by a 5,000 Bitcoin acquisition on March 28, at an average cost of $31,386 per coin. 

With BTC trading far higher today, the firm’s unrealized gains stand at an impressive 266.7%.

The AI-powered software provider has not set a fixed target for its total BTC holdings. In its filing, the company said it would “monitor market conditions” before making further purchases. This flexible approach contrasts with firms such as Metaplanet, which aims to accumulate 210,000 Bitcoin by 2027.