Addentax Group Corp., a Chinese textile and apparel company, has announced plans to acquire 8,000 Bitcoins and other cryptocurrencies, including Official Trump tokens, valued at roughly $800 million. The move signals a major shift for the company, traditionally focused on garment manufacturing and logistics, as it aims to embrace the booming world of digital assets.
Addentax Ventures Into Crypto
Addentax plans to fund this massive crypto purchase by issuing new shares of its common stock, avoiding cash payments. The company is reportedly in active talks with influential crypto holders who collectively control the targeted 8,000 Bitcoins and other digital assets, including TRUMP.
While no final agreement has been signed, these discussions highlight Addentax’s intent to bring crypto experts into its shareholder base, clinging to their knowledge to navigate the volatile crypto market. The issuance of stock allows the company to preserve cash reserves while aligning with strategic investors who understand blockchain technology. CEO Hong Zhida emphasized that this approach supports the company’s long-term vision of adding digital assets to its financial strategy.
Benefits of Diversifying into Crypto
By acquiring Bitcoin and other digital assets, Addentax aims to strengthen its balance sheet with highly liquid, widely recognized digital assets. Bitcoin, often dubbed “digital gold,” has gained traction among institutional investors for its potential as a hedge against inflation. This move, Addentax believes, could increase revenue streams and reduce reliance on traditional textile markets.
Additionally, bringing crypto-savvy shareholders on board will enhance the company’s expertise in blockchain, potentially opening doors to new ventures. Other companies have made similar moves recently. For example, Michael Saylor’s Strategy boosted its Bitcoin holdings to $39.41 billion, while Japanese investment firm Metaplanet invested over $608 million in Bitcoin this week, both citing long-term value and portfolio diversification. These examples vouch for the growing corporate interest in crypto as a strategic asset.
Working on its plans to deepen its blockchain strategy, Addentax aims to make a deeper entry into crypto investments and partnerships. While the $800 million deal awaits finalization, the company’s bold vision solidifies its position among traditional firms embracing crypto.
