Next Technology Holding Inc. (NASDAQ:NXTT), previously known as WeTrade Group Inc., has entered into an amended agreement to acquire Bitcoin (BTC), according to a recent SEC filing. The Wyoming-based data services company, which underwent a name change from WeTrade Group Inc. to Next Technology Holding Inc. earlier this year, detailed its amended and restated BTC Trading Contract in a Form 8-K filed on September 27, 2024.
Under the new terms, Next Technology is set to purchase up to 5,167 BTC at a price of $30,000 per BTC over the next 12 months. This agreement revises the original contract from September 2023, which had already seen the company purchase 833 BTC. The amendment comes after a prior update in May 2024, which had introduced a payment plan involving the issuance of shares and warrants for an additional 5,000 BTC.
The amended contract specifies a prepayment of $12,125,500 in cash by Next Technology, with the balance to be settled through the issuance of approximately 135.17 million shares of common stock, valued at $1.02 each, and warrants to purchase roughly 294.12 million shares at a nominal exercise price.
This strategic move by Next Technology follows a decision not to proceed with the original contract's terms due to market fluctuations in BTC value, as disclosed in a previous Form 8-K filed on June 26, 2024. The company has also announced the appointment of Transhare Corporation as its transfer agent, effective today.
In conjunction with these developments, Next Technology has updated its contact email addresses and launched a new website domain at www.nxtttech.com. The company's shift towards Bitcoin acquisition reflects its evolving business strategy and the growing integration of cryptocurrency in mainstream financial transactions.
InvestingPro Insights
Next Technology Holding Inc.'s (NASDAQ:NXTT) recent move to acquire Bitcoin aligns with its evolving business strategy, but investors should be aware of the company's financial position and market performance. According to InvestingPro data, NXTT has a market capitalization of just $8.23 million, reflecting its small-cap status. The company's stock has experienced significant volatility, with a one-year price total return of -90.8% as of the latest data.
Despite the challenging market performance, NXTT shows some positive financial indicators. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility as it pursues its Bitcoin acquisition strategy. Additionally, NXTT boasts impressive gross profit margins, with the latest data showing a gross profit margin of 54.5% for the last twelve months.
Investors considering NXTT should note that the stock is currently trading at a low Price / Book multiple of 0.12, which may indicate potential undervaluation. However, this should be weighed against the company's recent performance and strategic shifts. For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for NXTT, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.