Chinese company Next Technology to spend $500 million on Bitcoin
Chinese company Next Technology Holding, the largest corporate holder of bitcoin in the Middle Kingdom, announced its intention to sell shares worth up to $500 million to buy additional bitcoins.
What's behind the decision
The company filed documents with the Securities and Exchange Commission (SEC), stating that the net proceeds from the sale of the securities will be used for “general corporate purposes, including, but not limited to, the acquisition of Bitcoin.” The wording is cautious, but the gist is clear: Next Technology plans to seriously increase its crypto assets.
The company currently holds 5,833 bitcoins worth $671.8 million, making it the 15th-largest corporate Bitcoin holding in the world. To put that into perspective, it holds more bitcoin than David Bailey’s KindlyMD, Semler Scientific, or even GameStop.
Top 20 Corporate Bitcoin Holders. Source: Bitcoin Treasuries
If it spends even half of its $500 million on bitcoin at current prices, the company could buy about 2,170 more bitcoins. That would bring its total holdings to more than 8,000 bitcoins, a sizeable sum.
The trend is gaining momentum
Next Technology is not alone in its ambitions. The company follows a growing trend of corporate Bitcoin accumulation, in which public companies use a variety of financial instruments — from stock offerings to convertible bonds — to finance Bitcoin purchases.
The statistics are impressive: 190 public companies currently hold bitcoin on their balance sheets, up from less than 100 at the start of the year. The combined holdings of these companies exceeded 1 million bitcoins at the start of the month, representing more than 5% of the current supply of bitcoin.
Michael Saylor's Strategy remains in the lead with nearly 639,000 bitcoins on its balance sheet. The company has effectively become a bitcoin fund disguised as a tech firm.
Flexible approach
Unlike some other companies, Next Technology, an artificial intelligence services company based in the United States, has no specific Bitcoin supply target. The documents say the company will “monitor market conditions” — a cautious approach.
This contrasts with the strategy of companies like Metaplanet and Semler Scientific, which have announced plans to accumulate 210,000 and 105,000 bitcoins, respectively — 1% and 0.5% of bitcoin's total supply — by the end of 2027.
Source: cryptonews.net
