Next Technology (NXTT) Plunges 51.75% as Nasdaq Delisting Threat Sparks Investor Anxiety

Next Technology (NXTT) plunged 51.75% on August 29, 2025, marking its fifth consecutive day of losses, with a cumulative decline of 76.61% over the period. The stock hit a new intraday low, falling 61.67% below its previous levels, a stark drop that reflects mounting concerns over its business viability and regulatory compliance.

The delisting threat from Nasdaq has emerged as a central driver of investor anxiety. The exchange cited NXTT’s status as a “public shell” after its SEC filings revealed the cessation of all operations in China by June 2024 and zero revenue reported in 2025. With only six employees remaining as of March 2025, the company’s lack of active business operations has triggered a violation of Nasdaq’s Listing Rule 5101. While NXTT requested a hearing to contest the decision, the outcome remains uncertain, leaving investors in a state of limbo.

Technical factors further exacerbated the sell-off. A bearish signal from the Relative Strength Index (RSI) triggered algorithmic trading strategies, intensifying downward momentum. The stock’s low liquidity and retail-driven volatility amplified price swings, aligning with a broader selloff in small-cap tech stocks. Peers like ADNT and AXL also faced intraday declines, underscoring a sector-wide shift toward risk-off sentiment amid macroeconomic uncertainties.

Despite a recent 2,373% surge in net income for H1 2025 driven by Bitcoin gains, the company’s pivot to cryptocurrency has not alleviated delisting risks. The introduction of a dividend policy requiring 80% profit distribution highlights a strategic shift but fails to address core operational challenges. Short interest, though reduced in June 2025, may have resurged as traders bet against the stock’s recovery amid regulatory and technical headwinds.

The interplay of regulatory scrutiny, operational stagnation, and market dynamics has left NXTT in a precarious position. While its Bitcoin-related earnings offer a potential upside, the immediate threat of delisting and sector-wide volatility dominate investor sentiment. The Nasdaq hearing outcome and broader market conditions will remain critical in shaping the stock’s trajectory.