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This Chinese investment firm has grabbed attention after revealing plans to buy $800 million worth of Bitcoin and other cryptocurrencies. The announcement caused a temporary surge in its stock price before it fell back and dipped even further.
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Addentax Group Corp., based in Shenzhen and listed on Nasdaq under the symbol ATXG, shared its crypto investment plans on Thursday. The company announced it would issue new common stock to fund the acquisition of 8,000 Bitcoin and other digital assets, including Donald Trump’s endorsed memecoin, TRUMP.
Right after the news broke, ATXG shares surged from $0.72 to $1.68. But the excitement did not last. The stock price quickly reversed and now sits at $0.61, down nearly 9% in the past 24 hours and more than 20% for the week.
Addentax is not a typical crypto player. It is involved in garment manufacturing, logistics, property management, and subleasing. Still, the company says the move is part of a shift toward blockchain-related investments.
CEO Hong Zhida explained the thinking behind the decision: “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 firm also mentioned it is actively holding talks with several well-known holders of Bitcoin and other major cryptocurrencies to help secure the assets. Though details remain limited, Addentax framed the crypto move as a part of its broader blockchain roadmap.
Investors appear to be weighing the risks of Addentax stepping into crypto markets, especially considering its stock volatility and the speculative nature of some of the tokens it plans to acquire.