Nasdaq-listed Next Technology announced that its board has unanimously approved the sale or pledging of its Bitcoin holdings in one or more tranches. The company currently holds approximately 5,833 BTC, positioning it as the 18th-largest Bitcoin treasury firm, according to the announcement.
The board determined that adjusting the company's digital asset position would reduce risk exposure and enhance liquidity in the best interests of the company and its stockholders. The decision followed a review of exchange security vulnerabilities, including the Binance hack that resulted in a $6.3 billion loss on October 29, as well as broader technological threats such as quantum computing concerns.
Next Technology stated that these factors have increased the custody and market risks associated with its Bitcoin holdings. The company confirmed it does not hold any of its BTC through major crypto exchanges.
Three Methods for Offloading Holdings
The company outlined three potential approaches for disposing of or leveraging its Bitcoin:
- Direct sales on crypto exchanges
- Over-the-counter sales with specific purchasers
- Pledging BTC holdings for financing purposes as a liquidity management tool
CEO Weihong Liu has been authorized to determine the timing and method of these transactions, as well as to negotiate and execute agreements with potential purchasers or counterparties related to block trades or pledging arrangements.
