Next Technology Holding: A Confusing Bet On Bitcoin With AI Promises

Summary Next Technology, rebranded from WeTrade in 2024, markets itself as AI-SaaS, yet currently functions primarily as a Bitcoin holding vehicle. Interestingly, NXTT has accumulated 5,833 Bitcoin so far, while issuing shares and warrants, causing substantial shareholder dilution. Still, the company itself generates no service revenues. Their only profits stem from unrealized gains from Bitcoin holdings. Ultimately, I think NXTT is basically a play on the price of Bitcoin. However, it has many more risks without a commensurate added upside. So, I think it’s worth passing. Next Technology Holding Inc. ( NXTT ) presents itself as an AI-driven SaaS innovator with ambitions to reshape SaaS services for small businesses in China. Its financial reality tells a different story because it hasn’t generated revenues from software and relies solely on the price of Bitcoin ( BTC-USD ) to generate profits. During April and May 2025, the company came close to being delisted due to its stock price dropping below $1.00. And since then, they’ve doubled down on their Bitcoin holding strategy by issuing new shares and warrants, diluting shareholders, and purchasing over 5,800 BTC. Interestingly, I think their Bitcoin strategy might even be viable by itself, assuming it continues appreciating over time. However, I think its strategic vision seems rather confusing in practice, and there’s no major valuation mismatch relative to its Bitcoin holdings. So, ultimately, I deem NXTT a “Hold” at these levels. A Bitcoin Play With An AI Narrative Next Technology Holding is effectively a technology holding company that was founded back on March 28, 2019, under the name WeTrade Group Inc . However, it was later rebranded to its current name in April 2024. NXTT is currently headquartered in Shenzhen, China, with service arrangements in the US, Hong Kong, and Singapore. It’s also an extremely lean operation, as it has only around six employees. It’s also worth mentioning that their previous name was closely tied to their previous internal power struggles and conflicting control claims. Source: Next Technology Holding Website. Retrieved June 15, 2025. However, post-rebranding, NXTT has shifted from a pure-play social e-commerce SaaS company in China to a basically tech holding company with a focus on Bitcoin. The idea is similar in spirit to MicroStrategy Incorporated ( MSTR ), with a consulting business that generates revenues that are converted into treasury holdings of Bitcoin. Likewise, NXTT seems to want to produce AI-enabled SaaS products to create sales and accumulate Bitcoin. However, as of Q1 2025, they haven’t generated any revenues. Nevertheless, NXTT technically develops Software-as-a-Service [SaaS] solutions for diverse industries using artificial intelligence [AI], big data, and machine learning. Its main product is called YCloud, which is a cloud intelligence system for multichannel analytics, social recommendation, and tools for supply chain. YCloud is supposedly tailored for small online retailers in China. NXTT claims to use its social e-commerce model in China to enhance analytics and recommendations via YCloud. Source: Next Technology Holding Website. Retrieved June 15, 2025. This way, NXTT has a dual focus on software services and crypto asset holdings on paper. But it’s mostly exposed to the volatile crypto market price swings, in particular Bitcoin. Also, since they don’t really generate any revenues at the moment, NXTT has resorted to issuing equity and warrants to raise capital. Such fresh capital is then reinvested into its Bitcoin treasury, which is recorded as “digital assets” in its balance sheet. Price Surge Fueled by Bitcoin Having said that, during April and May 2025, NXTT came very close to a potential Nasdaq delisting due to a low share price. The Nasdaq issued NXTT a non-compliance notice because its closing bid price remained under $1.00 for 30 consecutive business days and granted a 180-calendar-day cure period until October 2025 to regain compliance. And as you might imagine, a delisted security loses a lot of access to capital markets, which so far have been NXTT’s main funding source. Source: Next Technology Holding Website. Retrieved June 15, 2025. Shortly after that, in early May 2025, NXTT disclosed it had purchased approximately 5,833 Bitcoins. In fact, since the end of 2024, NXTT added a whopping 5,000 Bitcoin to its balance sheet, raising its balance to 5,833. So it was actually a savvy investment since by May 2025, each Bitcoin was trading around the $90,000 level. These are basically unrealized gains that show up as “Other Income” on their financials. And so far, it doesn’t seem like they intend on realizing those gains, from what I can tell. Still, their big bet on Bitcoin prompted a substantial rally in NXTT shares, which reached a high of $3.27, around the middle of May 2025. Also, since the shares are again above the $1.00 threshold on the Nasdaq, it further eases any delisting concerns for the time being. Unfortunately, it seems NXTT stock is back again around $1.40 at the time of this writing, despite Bitcoin trading much above $100,000. This is probably because around the same time, NXTT also issued approximately 135 million new shares and 294 million warrants as payment for acquiring the aforementioned 5,000 Bitcoins. Rather than pay in cash, the company used its equity and diluted shareholders to double down on Bitcoin. Source: Seeking Alpha Charts. Moreover, NXTT also seemed again on track to develop its AI innovation and expansion objectives from early 2025. You see, in January 2025, NXTT had previously announced an upgrade to its YCloud platform by integrating DeepSeek’s models. The idea was to use this AI model for code generation, chatbots, and predictive analytics, essentially positioning this upgrade as a game-changer for efficiency and customer experience. And, as you might imagine, their paper gains on Bitcoin could help them fund these types of projects. However, according to their Q1 2025 report, NXTT hasn’t generated any service revenues yet. Valuation And Risk Analysis Now, from a valuation perspective, NXTT trades at a $527.9 million market cap, so it’s still a relatively small company for the most part. Their latest financial report shows they hold the majority of their liquid assets in “digital assets,” namely Bitcoin. You see, NXTT’s actual cash and equivalents stand at just $668.4 thousand. However, they hold an impressive 5,833 Bitcoins, which they valued at $481.7 million as of Q1 2025. In fact, at the current Bitcoin price of approximately $107 thousand, their main asset is actually worth a bit more, closer to $624.1 million. Also, in NXTT’s defense, they don’t have any financial debt other than regular operating liabilities. And their book value was $421.0 million, indicating a P/B of 1.3 as of Q1. But remember, their current Bitcoin stash has appreciated by roughly $142.4 million since Q1, implying an “updated” book value of $563.4 million. So their actual P/B is likely closer to 0.9. For comparison, their sector’s median P/B is noticeably higher at 3.3, so right from the get-go, NXTT might seem slightly cheap. Source: NXTT’s 10-Q Report. Q1 2025. Moreover, looking at the rest of their financials, NXTT is much closer to a company that just holds Bitcoin. In that sense, I think Bitcoin ETFs and the Bitcoin valuation itself are probably a better valuation metric for NXTT. So, NXTT’s Bitcoin holdings do suggest it’s roughly fairly valued. However, the reality is that NXTT’s latest Q1 showed they’re also paying G&A expenses to run this operation. In essence, I think we can consider those G&D expenses as “fees” for holding the Bitcoin for investors (at least until NXTT has actual revenues, if ever). In that sense, NXTT recorded Q1 G&A expenses of $449.9 thousand. If we annualize that figure, it indicates $1.8 million in G&A expenses. And if we compare that to my estimate of their Bitcoin “AUM” of $624.1 million, it implies an “expense ratio” of 0.29%. This expense ratio is also slightly higher than most straight-up Bitcoin ETFs , but not by a wide margin, either. As a side note, the good news is that NXTT holds so much Bitcoin that it effectively has more than enough “cash” runway for the foreseeable future. Source: Seeking Alpha. Plus, remember that we also take on additional risks on NXTT compared to such Bitcoin ETFs. NXTT could (in theory) raise those G&A expenses at its discretion. Similarly, they could cash in those gains and reinvest them aggressively into their AI projects, which could destroy shareholder value relative to simply holding Bitcoin. And lastly, the price of Bitcoin itself has been historically very volatile. I also find their lack of a coherent strategic vision very confusing. If you go to their website, they claim to be focused on SaaS, Blockchain, AI, Digital Assets, and even New Energy. These factors, coupled with a lack of concrete catalysts, make NXTT a very unremarkable (and potentially dubious) investment proposition in my opinion. Conclusion: Pass On This Bitcoin Play Overall, NXTT has a peculiar corporate history that has somehow evolved into a pure play on Bitcoin. While this may have been a revolutionary story before Bitcoin ETFs were approved, today it’s not as impressive. On top of that, they have interesting AI ambitions, but in practice, none of it has materialized so far. So, it’s unclear to me why anyone would take on higher risks than simply holding Bitcoin to potentially make the same gains as they would with Bitcoin alone. At the same time, I have to admit that NXTT doesn’t seem wildly overvalued or undervalued, either. Hence, I think the stock looks like a “Hold” at these levels.

Source: Seeking Alpha