As Bitcoin Soars, Chinese Company Makes $1.3 Billion BTC Move

Shenzhen-based clothing manufacturer Addentax Group Corp. (ATXG) has announced a new non-binding agreement to purchase a total of 12,000 Bitcoin, revising the 8,000 BTC purchase plan it announced in May. This potential acquisition is worth approximately $1.3 billion at current prices. The company said in a statement today that the acquisitions will be financed through the sale of ATXG shares, which are traded on Nasdaq. However, details of the plan remain unclear. Addentax said the final agreement is subject to signing, a comprehensive due diligence process being completed and necessary approvals being obtained. Addentax said, “This specification sets the preliminary framework for the planned acquisition and is not a binding contract.” The company explained that critical details such as how many BTC will be purchased, how many shares will be issued, and share pricing have not yet been determined. Despite this, management continues to intend to allocate significant resources to its long-term Bitcoin investment strategy. Related News: Renowned Economist Robert Kiyosaki Says, “Bitcoin Seems Very Expensive Right Now, But I'm Still Buying It,” and Explains Why However, Addentax’s market value remains below $7 million as of today, according to Google Finance data. The company’s plans to make a crypto investment of this scale have raised questions among investors, with its shares trading below $1 for over a year. Experts point to the potential risk of share dilution and volatility. The company’s past crypto ventures have also attracted attention. In May, it announced that it had held an acquisition talks worth around $800 million with “influential” crypto representatives, including memecoin investors named TRUMP, but stated that no binding agreement had been made at the time. Addentax, a textile company, is one of the latest to join the ranks of companies planning to create cryptocurrency reserves. However, some observers argue that such statements can sometimes be used to boost company stocks. The 2017 Long Island Iced Tea company’s name change to Long Blockchain Corp. and the explosion of its stock price remains one of the most remembered examples of this. *This is not investment advice. Continue Reading: As Bitcoin Soars, Chinese Company Makes $1.3 Billion BTC Move