Key Takeaways
Authorization Scope: CEO authorized to sell or pledge up to 5,833 BTC ($455M) in tranches; no sales completed yet.
Custody Risk Shift: Decision follows the Binance hack and exchange vulnerabilities, reversing previous accumulation strategy.
Market Disconnect: The $455M Bitcoin treasury dwarfs Next Technology’s $7.8M market capitalization by roughly 58 times.
Authorization Scope: CEO authorized to sell or pledge up to 5,833 BTC ($455M) in tranches; no sales completed yet.
Custody Risk Shift: Decision follows the Binance hack and exchange vulnerabilities, reversing previous accumulation strategy.
Market Disconnect: The $455M Bitcoin treasury dwarfs Next Technology’s $7.8M market capitalization by roughly 58 times.
Next Technology Holding, a Nasdaq-listed software company trading under the ticker symbol NXTT, has authorised its CEO to sell or pledge some or all of its approximately 5,833 Bitcoin in tranches, effective October 30, 2026. The board of directors took this step after re-evaluating digital asset custody risks following the Binance hack, security vulnerabilities at exchanges, and long-term threats from quantum computing.
The Bitcoin holding is valued at approximately $455 million based on market prices as of November 2. However, the company has only paved the way for potential transactions and has not announced any completed sales or pledges.
Next Technology Opens the Door to Bitcoin Sales
Next Technology’s board of directors unanimously approved in writing the authorization to sell or pledge Bitcoin in one or more tranches. According to the official announcement, CEO Weihong Liu has the authority to determine the pricing, volume, and execution timing, while also being empowered to negotiate with buyers, exchanges, or financing partners.
The scope of authorization applies to the company’s entire Bitcoin holdings, but this does not imply that Next Technology will exit its entire position. The company has not set a target volume, minimum price threshold, or execution timeline, and stated there is no guarantee that any sale or pledge transactions will be completed.
The move marks a significant shift from its previous accumulation strategy. In its March securities offering prospectus, Next Technology had stated its intention to continue purchasing and increasing its Bitcoin holdings. The new announcement shifts the focus toward reducing exposure and increasing liquidity, even as the company continues to claim pursuit of a combined “AI plus digital assets” model.
Binance Hack Raises Broader Custody Concerns
Next Technology stated that its board re-evaluated custody risks following the Binance hack. The company confirmed it does not hold Bitcoin on or through this exchange, but cited the incident along with exchange security vulnerabilities and the risk of international cyberattacks when explaining its decision to sell or pledge the asset.
Binance confirmed that its hot wallets were compromised on October 29, resulting in the unauthorized withdrawal of approximately $6.3 billion in digital assets. TRM Labs estimated the damages at around $6.36 billion and assessed with high confidence that TraderTraitor, a North Korea-linked hacker group, was behind the incident. Binance stated it has found no evidence that the private keys of the compromised wallets were leaked.
The exchange utilized SAFU, insurance funds, and corporate resources to replenish assets, while restoring withdrawals in phases starting November 1. In an update on November 2, Binance stated that its October 31 Proof-of-Reserves snapshot was made available for user verification via zero-knowledge proof, and major assets including BTC, ETH, USDT, BNB, and USDC were fully backed.
Bitcoin accounted for the vast majority of assets reported by Next Technology as of the end of June. In SEC filings, Next Technology stated that nearly all of its Bitcoin is held with professional custodians in Japan. However, public filings do not disclose custodian names, wallet addresses, or custodian attestations to allow investors to independently verify the Bitcoin balance.
Next Technology also warned that insurance coverage might only cover a small fraction of Bitcoin’s value. If a custodian becomes insolvent, the company could be treated as an unsecured creditor, delaying or restricting asset recovery.
A $455M Bitcoin Treasury Versus an $8M Market Cap
The scale of Bitcoin authorized for sale or pledge far exceeds Next Technology’s market value. NXTT shares closed on October 30 at $5.30. With approximately 1.473 million shares outstanding, the company’s market capitalization stands at around $7.8 million. Compared to the Bitcoin price of approximately $77,940 on November 2, Next Technology’s 5,833 BTC is worth nearly $455 million. This figure is roughly 58 times the company’s market cap.
According to its most recent 10-Q report, Next Technology recorded the same amount of Bitcoin with a book value of $351.5 million as of June 30, compared to a total cost basis of approximately $183.1 million. Most of these assets originated from the purchase of 5,000 BTC completed in March 2025.
The valuation of nearly $455 million is calculated using the market price of Bitcoin as of November 2, rather than being based on a completed transaction. The actual capital the company can raise will depend on volume, execution price, and whether the Bitcoin is sold or used as collateral, while Next Technology has not provided details on these factors.
Exchange Sale, Block Trade or Bitcoin-Backed Loan?
The resolution authorizes Next Technology to sell Bitcoin directly on exchange order books, execute block trades with buyers, or pledge assets to secure loans. The company may utilize one or multiple options and split transactions into multiple tranches.
If sold on an exchange, the processed Bitcoin will enter the spot market and appear on the order book. The full 5,833 BTC does not necessarily have to be sold all at once. Next Technology has not provided an expected volume or execution timeline.
A block trade allows the company to negotiate directly with one or more buyers regarding volume and price. This mechanism prevents a large transaction from having to clear entirely on public order books, thereby mitigating immediate impact on the spot market.
Under a loan option, Bitcoin serves as collateral for the loan. A drop in Bitcoin’s price could lead to margin calls or liquidation under the agreed terms with the lender. Next Technology has not disclosed loan sizes, loan-to-value (LTV) ratios, interest rates, or liquidation thresholds.
What Comes Next
The October 30 decision allows CEO Weihong Liu to begin selling or pledging Bitcoin in tranches, but Next Technology has not specified a deadline, target volume, or execution price.
A completed transaction will show whether the company is merely paring down a portion of its position, using Bitcoin to raise capital, or exiting the majority of its investment. Public filings currently also do not disclose custodian names, wallet addresses, or provide independent attestations for these holdings.
At the time of publication, Next Technology has not reported any sales or pledges. The 5,833 BTC figure represents the scope of assets authorized for disposition, not the amount of Bitcoin that has been introduced to the market.
Disclaimer
NFTevening is an award-nominated media outlet that covers NFTs and the cryptocurrency industry. Opinions expressed on NFTevening are not investment advice. Before making any high-risk investments in cryptocurrency or digital assets, investors should conduct thorough research. Please be aware that any transfers and transactions are done at your own risk, and any losses incurred are entirely your responsibility. NFTevening does not endorse the purchase or sale of any cryptocurrencies or digital assets and is not an investment advisor. Additionally, please note that NFTevening participates in affiliate marketing.
