Bitcoin's Allure Drives Chinese Firms to Rethink Corporate Value

Next Technology Holdings, a leading Chinese firm in Bitcoin treasury management, is set to raise up to $500 million through a stock offering aimed at acquiring more Bitcoin. The firm, which already holds 5,833 BTC, plans to use the proceeds from the stock sale to expand its holdings, potentially surpassing the 8,000 BTC threshold. This move reflects a strategic effort to strengthen the company’s position in the cryptocurrency market while leveraging Bitcoin’s perceived long-term value. Unlike many of its peers, Next Technology has not set a hard cap on its Bitcoin purchases, instead opting to respond to market conditions and liquidity availability.

The company began its Bitcoin acquisition journey in December 2023 and, after a period of inactivity, surprised the market with a significant 5,000 BTC purchase in March 2025. This acquisition, funded by a mix of cash, stock, and warrants, has already yielded a 266.7% paper profit for the company. As of June 30, 2025, the company’s Bitcoin holdings were valued at over $670 million. The firm’s dual-engine model, combining AI-driven software development with Bitcoin as a treasury reserve, has been a key driver of its recent financial performance. CEO Weihong Liu highlighted the company’s diversified approach as a source of “significant value creation for shareholders” in its H1 earnings report.

Despite these strong fundamentals, the market reaction to the capital raise has been mixed. Shares of Next Technology (NXTT) dropped nearly 5% during regular trading, with a further decline of 7.4% in after-hours trading following the announcement. The stock’s poor performance could be attributed to investor skepticism about the company’s aggressive expansion strategy and the inherent volatility of the crypto market. However, the firm remains optimistic, emphasizing its flexibility to adjust purchasing based on market conditions and its long-term vision of Bitcoin as a core pillar of value preservation.

The trend of corporate Bitcoin accumulation is not limited to Next Technology. Other Chinese firms, including Cango Inc. and MOGU, have also taken steps to integrate cryptocurrencies into their business models. Cango Inc., for instance, has fully transitioned into a Bitcoin mining company, operating 4,000 BTC and 50 EH/s of mining capacity. Similarly, MOGU announced a $20 million allocation to cryptocurrencies, triggering an 80% surge in its stock price. These moves reflect a broader institutional confidence in Bitcoin’s role as a store of value, particularly amid global economic uncertainties.

From a macroeconomic perspective, Bitcoin’s appeal as a corporate asset has been reinforced by recent developments in U.S. accounting standards. The Financial Accounting Standards Board (FASB) now allows companies to report unrealized gains on Bitcoin holdings, enhancing the cryptocurrency’s attractiveness as a treasury asset. This change has enabled firms to recognize the value of their crypto holdings sooner, improving financial statements and investor perception. Additionally, Bitcoin’s finite supply and perceived resistance to inflation have made it an appealing alternative to traditional fiat currencies, especially for firms in markets with negative real yields.

The geopolitical landscape also plays a role in shaping corporate Bitcoin strategies. As U.S.-China trade tensions persist, companies are increasingly seeking assets that can hedge against economic uncertainty and currency devaluation. Chinese firms, despite domestic restrictions on crypto trading, continue to show interest in blockchain and digital assets through offshore ventures and state-backed initiatives. Meanwhile, U.S. regulators are intensifying their scrutiny of crypto markets, creating a complex but evolving regulatory environment.

Looking ahead, the sustainability of corporate Bitcoin accumulation remains a topic of debate. While some experts predict continued growth in institutional adoption, others warn of potential market disruptions. Volatility, regulatory shifts, and geopolitical developments could all influence the pace of Bitcoin’s integration into corporate treasuries. Nonetheless, the long-term bullish sentiment among major players suggests that Bitcoin will continue to be viewed as a strategic asset in the years to come.