Addentax Group (ATXG) to acquire up to $800M in Bitcoin and TRUMP tokens via new stock issuance to grow its crypto strategy.
A small Chinese company has disclosed its intention to utilize stock-based financing to acquire a substantial portfolio of cryptocurrency assets, such as Bitcoin and the TRUMP token based on memes. Addentax Group Corp. (Nasdaq: ATXG), a textile and logistics company, has disclosed that it is in discussions with numerous cryptocurrency holders to acquire digital assets valued at up to $800 million.
The focus of these discussions is the acquisition of up to 8,000 Bitcoins and other tokens, such as Official Trump, through the issuance of new shares of common stock. The company stated that the discussions involve influential crypto holders with a significant presence in the sector, although no binding agreements have been reached yet.
ATXG intends to exchange cryptocurrency assets for stock
Addentax disclosed that its methodology entails the issuance of new common stock to proprietors of various cryptocurrencies in exchange for digital assets. The company aims to incorporate these assets into a long-term investment and holding strategy.
The company disclosed that it has collectively engaged in discussions with entities and individuals believed to possess approximately 8,000 BTC. ATXG characterized them as seasoned market participants with extensive networks in the cryptocurrency sector.
“This initiative bolsters the Company’s broader blockchain strategy,” stated CEO Hong Zhida. Additionally, he stated that the action will facilitate the inclusion of seasoned crypto investors on the company’s shareholder register.
The Addentax Group thinks this action could enhance its balance sheet by attracting shareholders with experience in digital markets and introducing liquid and widely traded digital assets.
Related Moves by GD Culture Group Raise Questions
Addentax Group’s announcement was made immediately after GD Culture Group, another obscure Chinese company, disclosed a substantial investment in cryptocurrency. As a securities filing indicates, the New York Times reported that GD Culture Group had acquired $300 million in Bitcoin and TRUMP tokens.
The investment was made by GD Culture through a stock sale to an undisclosed entity domiciled in the British Virgin Islands, even though the company had only eight employees and reported zero revenue last year. Market observers have been intrigued by the absence of specifics regarding the transaction.
Although it lacks any intrinsic value or underlying use case, the TRUMP token, which was established as a meme coin with political associations, has garnered increasing attention. According to reports, certain investors perceive it as a means of gaining access or influence in political circles.
Cryptoprojects associated with Donald Trump are currently under regulatory scrutiny
Concurrently, there is increasing regulatory scrutiny regarding crypto ventures associated with President Donald Trump. House Democrats on Capitol Hill are requesting records from the Treasury Department regarding suspicious financial activities associated with Trump-related crypto initiatives.
A letter addressed to Treasury Secretary Scott Bessent requested access to suspicious activity reports (SARs) associated with Trump’s cryptocurrency initiatives. Prominent Democrats signed the letter from three significant House committees.
In the interim, Movement Labs, which is affiliated with World Liberty Financial (WLFI), which is affiliated with Donald Trump, is also receiving criticism. The project’s failure to disclose agreements made with early investors, as suggested by leaked documents, has raised concerns about transparency. The price of MOVE, the project’s token, decreased by over 6% in response to these allegations.
Lawmakers have identified potential conflicts of interest and are advocating for additional investigation. These developments occur during a period in which federal regulators and investigative organizations are conducting a more thorough examination of crypto-related political finance.
ATXG Intends to Expand into the Digital Asset Market
ATXG underscored that its present initiative is a component of a more extensive strategy to interact with digital finance and blockchain technology. Management has observed that institutional investors increasingly accept digital assets such as Bitcoin, which are considered liquid.
By acquiring these assets and incorporating crypto-experienced investors into its shareholder base, ATXG intends to enhance its financial strength and market position. The company also regards this strategy as a step toward establishing more intimate relationships within the cryptocurrency ecosystem.
ATXG has not specified a timetable for the completion of a deal, and all discussions are non-binding. The company, however, characterized the acquisition plan as a “core action” of its crypto strategy.