Addentax has announced its plans to acquire up to $800M worth of Bitcoin and the Official Trump meme token by issuing common stock.
Companies like Strategy, Metaplanet, and Semler Scientific have made headlines in recent years for allocating portions of their corporate treasuries to cryptocurrencies. Addentax is attempting to join the ranks with its recent announcement.
Crypto as treasury assets
Addentax Group Corp. (Nasdaq: ATXG), a Chinese garment and logistics giant, has announced its plans to acquire up to $800M worth of cryptocurrency.
The company plans to acquire as many as 8,000 Bitcoins and even the “Official Trump” meme token by issuing shares of its common stock.
According to the statement, Addentax has been in discussions with a group of “substantial and influential” holders of Bitcoin and other mainstream cryptocurrencies.
So far, no official agreement has been finalized. Addentax has expressed its intention to issue common stock in exchange for these digital assets. The crypto holders the company is rumored to be in discussion with are believed to collectively possess around 8,000 BTC. It is also believed that these individuals have extensive influence and connections within the cryptocurrency ecosystem.
Addentax has recently begun embracing blockchain technologies and digital assets as pillars of its strategic future. The acquisition of digital assets by Addentax would dramatically reshape the company’s balance sheet and make it one of the public firms that are adding crypto to their treasuries.
Addentax’s CEO, Hong Zhida, stressed that the initiative represents a long-term investment strategy rather than a short-term market play.
“This initiative supports the Company’s broader blockchain strategy by facilitating potential acquisitions of digital assets such as Bitcoin and introducing strategic investors with experience in the crypto ecosystem,” Hong said in the announcement. “We believe that certain established digital assets may serve as a stable component of the Company’s long-term holdings, given their liquidity and increasing institutional interest over recent years.”
The remaining funds of the proposed $800M initiative would go toward other cryptocurrencies, such as the “Official Trump” token.
Addentax switches gears
Addentax Group Corp. was founded in Shenzhen and is primarily known for its operations in the garment industry, logistics services, and information systems integration. The company’s sudden pivot to crypto is consistent with the growing trend of blockchain integration across several industries.
Chinese firms have also been embracing digital assets as a way to protect their businesses against domestic and international economic uncertainties, such as currency fluctuations, unfavorable trade policies, and evolving consumer behaviors.
Digital assets offer these companies an alternative form of value storage and global liquidity. In addition to strengthening the company’s balance sheet with digital assets, Addentax’s $800M crypto plan may also improve its shareholder diversity.
The market’s response to Addentax’s strategy is yet to be seen, as the company is still in the middle of finalizing terms. Many companies, such as Strategy, formerly MicroStrategy, Tesla, and Block Inc., have profited from bold crypto ventures.In contrast, others like FTX and Celsius have become cautionary tales for volatility exposure and lack of transparency in digital asset dealings.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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