Next Technology Holding has received board approval to potentially sell or borrow against its 5,833 BTC treasury, worth approximately $450 million, as concerns over exchange security and quantum computing risks intensify following the Binance hack.

The Nasdaq-listed Japanese software company said its decision reflects growing uncertainty surrounding the security of digital assets. Its board has authorized the company to execute Bitcoin sales or use its cryptocurrency reserves as collateral for loans, potentially through several separate transactions.

Next Technology Holding (NXTT) identified the Binance security breach, vulnerabilities across cryptocurrency trading platforms and the potential ability of quantum computers to compromise Bitcoin’s cryptographic safeguards as key factors behind the move. The company emphasized that its Bitcoin holdings are not stored with Binance.

The responsibility for any potential transactions rests with CEO Weihong Liu, who will determine the execution schedule, selling prices and transaction volumes. The authorization covers sales through cryptocurrency exchanges, privately arranged transactions and Bitcoin-backed financing. However, NXTT noted that there is no certainty that any of these options will be pursued.

The company’s Bitcoin exposure is considerably larger than its stock market valuation. NXTT shares finished Friday’s session at $5.30, giving the company an estimated market capitalization of $7.8 million, based on approximately 1.47 million outstanding shares.

Meanwhile, its 5,833 BTC holdings are worth around $449 million at a Bitcoin price of $77,000. The cryptocurrency treasury is therefore valued at more than 50 times the company’s equity market capitalization.

March 2025 purchase accounts for most Bitcoin holdings

Next Technology acquired the majority of its Bitcoin through a 5,000 BTC purchase completed in March 2025 under an agreement negotiated earlier. The company funded the acquisition using shares and warrants, together with a cash payment made in advance.

The transaction involved total consideration of $158.1 million, placing the average acquisition cost at approximately $31,600 per Bitcoin.

NXTT’s annual report indicates that nearly all its Bitcoin is held by institutional custody providers operating in Japan. However, the company has not disclosed the identities of these custodians or provided additional details about its storage arrangements.

The absence of publicly disclosed wallet addresses also makes it difficult for investors to independently confirm the company’s reported Bitcoin reserves.

CoinDesk has contacted Next Technology seeking the names of its custody providers and requesting wallet addresses or an official custodian attestation to independently establish the reported holdings.