Next Technology: Dilution Overpowers Bitcoin Exposure

2026-05-18 07:54:58 ET

When I initiated coverage of Next Technology Holding Inc. ( NXTT ) last June, I had utmost skepticism for what I found about NXTT’s core operations , including the lack of a clear product offerings and no backstop business beyond the Bitcoin ( BTC-USD ) stash at the time. Little did I know that regulators will pick up on some of the same concerns which led to a hearing between Next Technology and regulators October last year. Next has shown signs of improvement in parts of its business. Revenue from its core business was $11.61 million for the full year FY25, compared to just $1.8 million in FY24. While gross margin declined to 15.1% from 59.4% in FY24, despite the higher revenue. This shows that while concern for a backstop business is now partially alleviated, execution still remains to be proven. The surge in Services Revenue is why I am coming off the initial Strong Sell I assigned in my initiating piece and turning softer, though still on the bearish side, because I believe NXTT still has plenty to prove beyond its Bitcoin-backed balance sheet....

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