Next Technology Plunges 42% on Dilutive $9 Million Stock Offering
The AI and digital asset company's offering of 60 million shares at $0.15 each raises significant shareholder dilution concerns.
Shares of Next Technology Holding Inc. (NASDAQ: NXTT) plummeted over 42% after the company announced a registered direct offering to raise approximately $9 million. The deal, which involves selling 60 million shares at a deeply discounted price of $0.15 per share, has sparked significant concerns among investors about shareholder dilution.
The offering, managed by Univest Securities, LLC as the sole placement agent, is expected to close around September 3, 2025. According to the , the sale includes common stock or pre-funded warrants in lieu thereof to a single investor, a detail that suggests a negotiated deal at a substantial discount.
Next Technology, a company focused on AI-enabled SaaS and digital assets, is making the offering under an existing previously filed with the U.S. Securities and Exchange Commission (SEC). While a common method for raising capital, the sheer volume of shares being issued at a low price point has led to the sharp sell-off in the market.
The move to raise capital comes as the company continues to build out its dual-engine strategy of combining artificial intelligence with digital asset holdings. However, the dilutive nature of this particular financing round has evidently unsettled existing shareholders. Investors will be closely watching how Next Technology's management team deploys the new capital to generate growth and whether the long-term strategy can justify the immediate cost to the company's stock value.