Next Technology Holding plans $500M stock sale to buy Bitcoin, expanding its treasury amid rising institutional interest in digital assets and crypto adoption.
Next Technology Holding, China’s largest corporate holder of Bitcoin, has announced plans to sell up to $500 million of its common stock. The company will utilize the proceeds to acquire additional Bitcoin and other general purposes of the business. This was revealed in a filing that was made to the U.S. Securities and Exchange Commission on Monday.
Public Companies Increase Stock Sales to Buy Bitcoin
According to the filing, the software company said it would use the money for general corporate purposes. It also plans to buy Bitcoin. This action is an indicator that there is an ongoing investment in digital assets as a strategic investment in the treasury.
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Even in the case of half of the suggested amount of 500 million being spent on purchasing Bitcoin at the existing market rates, the company will be able to purchase around 2,170 BTC. This would add to the sum of its holdings to more than 8,000 Bitcoin, which would make it one of the largest treasuries of Bitcoin in the world.
According to the information provided by BitcoinTreasuries.net, Next Technology Holding now has 5,833 BTC with a value of approximately $671.8 million. This ranks the company 15th in the world in terms of publicly traded companies that own Bitcoin, which is above such companies as Semler Scientific and GameStop.
The move to issue capital by the sale of stock is a larger trend in the case of public companies. A number of companies have also started relying on equity issues, convertible notes, and other financial instruments to finance Bitcoin acquisitions. This plan is based on the belief that Bitcoin can store value long-term and protect against inflation.
By 2025, there will be approximately twice as many publicly traded Bitcoin companies, where 190 companies are currently holding more than 1 million BTC in total. This represents over 5 percent of the total supply of Bitcoin indicating greater institutional interest in the asset.
Next Technology’s Move Highlights Growing Corporate Bitcoin Treasuries
The strategy is similar to the ones taken by other firms, such as Semler Scientific, which recently this year applied to raise a shelf offering of up to 500 million dollars to invest in Bitcoin purchases and other operations. These actions serve as financial plans and branding strategies that move companies toward crypto adoption.
However, the long-term effects depend on how the company uses the funds. Specifically, the company must consider how much stock it sells and at what price. In addition, the amount it invests directly in Bitcoin plays a key role. When investing a significant percentage in Bitcoin, the balance sheet of the company may become more and more dependent on the variable activity of one digital asset.
The view of investors regarding this type of strategy is split. The advocates believe that the scarcity of Bitcoins and their increasingly institutionalized nature make the cryptocurrency a fitting corporate treasury extension.
The migration of Next Technology underscores the further growth of treasuries of Bitcoin in corporations. Other companies have also used convertible debt, preferred stock, and SPACs. As the digital asset market grows, more firms will follow this path. Capital markets will increase their Bitcoin exposure and support future financial technologies.
