As Bitcoin Rises, a 1.3 Billion Dollar BTC Move Comes from a Chinese Company!

Shenzhen-based clothing manufacturer Addentax Group Corp. (ATXG), revised its previously announced plan to acquire 8,000 BTC in May and announced a non-binding new agreement for a total acquisition of 12,000 Bitcoin.

This potential acquisition corresponds to approximately 1.3 billion dollars at current prices.

The company stated in a press release today that the acquisitions would be financed through the sale of ATXG shares traded on Nasdaq. However, the details of the plan remain uncertain. Addentax mentioned that the final agreement needs to be signed, a comprehensive review process must be completed, and the necessary approvals must be obtained.

Addentax stated, "This specification outlines the preliminary framework for the planned acquisition and is not a binding contract." The company announced that critical details such as how many BTC will be purchased, how many shares will be issued, and the pricing of shares have not yet been determined. Nevertheless, management continues to express its intention to allocate significant resources to a long-term Bitcoin investment strategy.

However, according to Google Finance data, Addentax's market value has remained below 7 million dollars as of today. The company's plan to make such a large-scale crypto investment has raised questions among investors, as its shares have been trading below 1 dollar for more than a year. Experts are warning about potential share dilution and volatility risks.

The company's past crypto ventures had also attracted attention. In May, it announced that it was in discussions for an acquisition worth approximately 800 million dollars with "influential" crypto representatives, including investors of the memecoin TRUMP, but stated that no binding agreements had been made at that time.

Addentax, as a company with a textile background, is one of the latest examples to join the ranks of companies planning to create cryptocurrency reserves. However, some observers argue that such statements may sometimes aim to stimulate the company's stock. The 2017 name change of "Long Island Iced Tea" to "Long Blockchain Corp." and the subsequent surge in stock price remains one of the most memorable examples in this regard.