Next Technology Holding, listed on Nasdaq, has announced a strategic review of its substantial Bitcoin holdings, contemplating options for sale or collateralized borrowing. The Japan-based software company cites security concerns related to recent cyberattacks on Binance, exchange-related vulnerabilities, and potential threats from quantum computing as compelling reasons for this move.
Board Grants Flexible Trading Authority
The company revealed that any transactions involving their Bitcoin assets could be executed in single or multiple installments. The board’s authorization covers sale on exchanges, private deals, and Bitcoin-backed financing. However, it emphasized that this authorization does not guarantee the completion of any particular transaction.
The final decision on timing, pricing, and transaction size rests with CEO Weihong Liu. Next Technology underlined that none of its Bitcoin assets are held on or through Binance.
The board authorized the sale or collateralized borrowing of approximately 5,833 BTC, though there is no obligation to act on this, with specifics to be determined.
Stark Contrast Between Balance Sheet and Market Value
Next Technology’s figures highlight a significant disparity between its reported crypto assets and market capitalization. The company’s shares ended Friday at $5.30 each, valuing the firm at approximately $7.8 million based on around 1.47 million outstanding shares.
With Bitcoin trading at roughly $77,000, the declared 5,833 BTC equates to an estimated value of $449 million—over 50 times the company’s equity value on the stock market.
Majority of Bitcoin Acquired in 2025 Transaction
A significant portion of Next Technology’s Bitcoin holdings originated from a single transaction. In March 2025, the company purchased 5,000 BTC as part of a prior agreement, settling the deal with a combination of stock, warrants, and a pre-paid cash element.
The acquisition was recorded at $158.1 million total, translating to an approximate cost of $31,600 per Bitcoin.
The annual report states that the Bitcoin holdings are “almost entirely” held with institutional custodians in Japan, though their identities were not disclosed.
Transparency in Custodial Practices Lacking
Public disclosures from the company do not include wallet addresses that would allow investors to independently verify the reported balances. The absence of named custodial service providers further limits transparency regarding the location of the holdings.
As a Japanese software firm, Next Technology emphasizes institutional custody in its annual report, yet current documentation does not clarify if their Bitcoin reserves are backed by third-party verification.
