Next Technology Rallies 21% Ahead of Reverse Stock Split
The AI and Bitcoin-focused firm saw massive trading volume before announcing a 200-for-1 reverse split, creating a volatile scenario for investors.
Shares of Next Technology Holding (NXTT), a firm focused on AI and Bitcoin, surged by more than 21% on massive trading volume ahead of a planned reverse stock split. The company's stock saw over 183 million shares change hands, a significant increase from its daily average, before it announced the corporate action after the market close.
Next Technology Holding of its common stock, which will be effective on September 16, 2025. This move will reduce the number of outstanding shares from approximately 566 million to about 2.8 million. Reverse stock splits are often implemented by companies to increase their stock's trading price and meet exchange listing requirements. Following the announcement, the stock gave back its gains and more in after-hours trading, falling by over 40%.
The rally and subsequent drop highlight a period of significant volatility for Next Technology. The company has a dual-engine strategy of 'AI plus digital assets,' providing AI-enabled software services while also acquiring and holding Bitcoin. This strategy is reflected in its , which were driven by growth in its Bitcoin holdings. In a move to return value to shareholders, the company also recently approved a dividend policy with a minimum 80% payout ratio.
Despite these developments, Next Technology Holding , making it difficult for investors to gauge the company's long-term prospects. The lack of traditional analyst ratings means investors must rely more heavily on the company's announcements and market trends in the AI and cryptocurrency sectors. The upcoming reverse stock split will be a key event for investors to watch, as it will significantly impact the stock's price and could influence its appeal to a different class of investors.