Next Technology Authorizes Sale or Pledge of 5,833 Bitcoin to Boost Liquidity and Reduce Risk
Key Facts
Next Technology’s board unanimously authorized the sale or pledge of the company’s bitcoin holdings, in one or more tranches, through written consent effective October 30, 2026. The company said the aim was to reduce risk exposure and boost liquidity, without announcing that any sale had taken place. Its holdings stood at about 5,833 bitcoin on the same date. The board linked the decision to its review of the Binance incident and security and technology concerns, including cyberattacks, vulnerabilities in trading platforms and the potential cryptographic impact of quantum computing. The company confirmed that none of its coins are deposited with or through Binance.
The authorization gives the company the option to manage its holdings through a sale or pledge, without specifying how much would be sold or a timetable for execution. This differs from an announcement of a confirmed liquidation, as the statement only authorized action to meet the goal of boosting liquidity and reducing risk. The company had described bitcoin in its previous financial report as held for trading, and said it expected to continue accumulating it without a specific holdings target. It also said it expected to buy when the price falls and sell when it rises. The company said changes in fair value do not affect its cash position until realized through a sale.
The company’s report for the quarter ended June 30, 2026, showed that its holdings totaled 5,833 bitcoin, the same number recorded on December 31, 2025. However, the carrying value of the holdings fell to $351,509,806 in June, from $516,153,485 at the end of 2025. The company recorded an unrealized loss on digital assets of $164,643,679 during the six months ended June 30, after an unrealized gain of $395,661,456 in the same period of 2025. The company attributed the year-on-year swing mainly to a decline in the fair value of its bitcoin holdings and said price volatility would continue to affect its results. The first half of 2026 ended with a net loss of $135.6 million, compared with net income of $312 million in the first half of 2025.
The company is making the decision amid broader turmoil in the crypto-asset market following the Binance incident. The platform estimated the total impact of the hack at about $6.3 billion and said it had worked with blockchain partners to freeze affected assets worth about $3 billion on-chain as of its October 30 update. Binance said its initial investigation indicated that a developer operations team engineer’s laptop may have been compromised, and that it had found no evidence of private wallet keys being leaked. But a subsequent investigation uncovered additional breach points after the initial belief that the attack involved a compromised laptop. Reuters reported that most of the hack took place over about 20 minutes, starting after 20:00 GMT on Thursday, October 29.
The incident also affected asset prices and shares of companies linked to the sector. Bitcoin fell 3.2% on Thursday evening to below $79,000, according to the Associated Press. On October 30, Reuters said the currency had hit a six-week low and was down 3% at $76,469.82 at the time of its report. EL7 data showed bitcoin closed at $77,368.77 that day, while NXTT shares closed at $5.3. Coinbase shares also fell 4.8% and Strategy shares about 6% in extended U.S. trading, Reuters reported.
Binance said it would cover the losses from its Secure Asset Fund for Users and company funds, and that customer funds were safe. Reuters reported that the fund includes a $1 billion bitcoin reserve to protect customers in the event of a security breach. The platform aims to begin resuming withdrawals in stages after about 34 hours, subject to completion of security checks. It also said it plans to publish an initial proof-of-reserves snapshot, with results ready by November 2, 2026. The head of digital assets research at Standard Chartered linked the formation of a new market base to the freezing of assets and the emergence of further details about the hack, warning that downward price pressure could persist.