The largest Chinese Bitcoin treasury is planning to sell half a billion worth of its stock to accumulate the digital gold.
Next Technology Holding, the largest Chinese Bitcoin BTC $87 407 24h volatility: 1.9% Market cap: $1.74 T Vol. 24h: $53.29 B treasury firm, wrote in a filing with the US Securities and Exchange Commission that it plans to sell $500 million worth of its common stock.
According to the SEC filing, the Shenzhen-based company will use the funds to cover general corporate expenses and purchase additional Bitcoin.
Bitcoin and the broader altcoin market could potentially see positive momentum due to the large BTC accumulation plans.
However, it’s important to note that the crypto market has been moving in the high-volatility zone over the past month, with bearish momentum being slightly dominant. The overall market sentiment can have a strong impact on prices despite the interest from Bitcoin treasuries.
Why file with the us sec?
Next Technology Holding, which is originally based in Shenzhen, China, is a Nasdaq-listed company. It’s being traded on a US stock exchange.
Any company whose shares are traded publicly in the US must file with the SEC whenever it wants to issue more shares or make major financial moves. They are required to be compliant with the US regulations, despite having an overseas headquarters.
The Chinese BTC treasury firm currently has 5,833 BTC and has been holding the leading digital asset since September 2023, according to Bitcoin Treasuries data. Moreover, the company’s profit margin is at an impressive 269% at the reporting time — on average, each BTC cost $31,386 for Next Technology Holding.
Bitcoin is currently trading at $115,800.
The margin is huge compared to the top Bitcoin treasury firm, Strategy, led by Michael Saylor.
Saylor’s firm has bought a total of 638,985 BTC at an average price of $73,914. The US-based company is seeing a 56% profit on its Bitcoin holdings at the current price point.
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