Next Technology Holding Inc.(NXTT) - 2025 Q2 - Quarterly Results

H1 2025 Financial & Operational Highlights The company achieved substantial net income growth and significantly expanded its Bitcoin holdings in H1 2025, driven by fair value gains from digital assets and strategic acquisitions H1 2025 Key Financial Metrics vs H1 2024 | Metric | H1 2025 (US$ million) | H1 2024 (US$ million) | Change | | :--- | :--- | :--- | :--- | | Net Income | 312.0 | 12.6 | +2,373% | | Other Income | 395.7 | 15.6 | +2,437% | Asset Growth (as of June 30, 2025) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Bitcoin Holdings | 5,833 BTC | 833 BTC | +5,000 BTC | | Cash & Digital Assets | US$632.7 million | US$79.0 million | +701% | - The company successfully acquired 5,000 Bitcoin in H1 2025 in exchange for a combination of 135.2 million common shares, warrants to purchase 294.1 million shares, and $12.1 million in cash[6] - The significant increase in net income and other income was primarily driven by a $449.0 million gain from the increase in Bitcoin's price[5] Management Commentary Management attributed strong H1 2025 performance to a dual strategy of AI software development and strategic Bitcoin acquisition, planning continued disciplined accumulation - Management highlighted the strength of its diversified business model, combining AI-enabled software development services with a strategic Bitcoin acquisition and holding strategy[3] - The company's forward-looking strategy involves continuing to deliver innovative software solutions while prudently managing and expanding its Bitcoin holdings[3] - NXTT views Bitcoin as a long-term store of value and a potential hedge against inflation, believing in its potential for long-term appreciation with increasing global adoption[3] Half year 2025 Financial Review H1 2025 financial performance was significantly boosted by a substantial increase in other income, primarily from digital asset fair value gains, leading to a dramatic rise in net income - General and administrative expenses for H1 2025 were $705,820, a slight increase from $675,144 in H1 2024, primarily due to higher litigation-related legal fees[7] - Other income for H1 2025 was $395.7 million, compared to $15.6 million in H1 2024, with the increase mainly attributed to fair value gains from digital assets[8] - Net income for H1 2025 reached $312.0 million, a significant increase from $12.6 million in H1 2024, also driven by the fair value gain from digital assets[9] Financial Statements The condensed consolidated financial statements reflect a substantial increase in net income and total assets, primarily driven by the significant appreciation of digital assets Condensed Consolidated Statements of Operations The statements of operations highlight a dramatic increase in other income and net income for both the six and three months ended June 30, 2025 Statement of Operations (Six Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Other income | 395,661,456 | 15,595,778 | | Net income | 312,014,952 | 12,619,286 | | Net income per share, basic and diluted | 1.16 | 2.74 | Statement of Operations (Three Months Ended June 30) | Metric | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Other income (loss) | 150,350,300 | (8,423,621) | | Net income (loss) | 118,574,527 | (6,927,209) | | Net income (loss) per share, basic and diluted | 0.27 | (0.99) | Condensed Consolidated Balance Sheets The balance sheets show a significant expansion in digital assets, total assets, and stockholders' equity as of June 30, 2025 Balance Sheet Highlights (in USD) | Metric | June 30, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | Digital assets | 632,067,553 | 78,322,430 | | Total assets | 633,275,940 | 92,916,317 | | Total liabilities | 93,674,759 | 11,288,255 | | Total Stockholders' Equity | 539,601,181 | 81,628,062 | Company Overview & Forward-Looking Statements Next Technology Holding Inc. operates with a dual strategy of AI-enabled SaaS and strategic Bitcoin holdings, while acknowledging risks related to digital asset volatility and regulatory changes - The company's business model is built on a dual-engine strategy of "AI plus digital assets," providing AI-enabled SaaS software while also holding Bitcoin for long-term appreciation and as a potential inflation hedge[10] - Key risks identified in forward-looking statements include fluctuations in the market price of Bitcoin, changes in accounting or securities laws, the impact of new investment vehicles for digital assets, and cybersecurity threats like hacks or loss of private keys[11]