Chinese clothing company Addentax contemplates a $800 million investment in Bitcoin and TRUMP digital tokens
Addentax Group Corp., a Chinese garment manufacturer listed on NASDAQ (NASDAQ: ATXG), has revealed plans for a significant investment in Bitcoin. The company aims to acquire up to 12,000 Bitcoins, valued at approximately $1.3 billion, marking a shift towards integrating Bitcoin as a core part of its financial and treasury approach.
The decision is driven by the growing institutional interest in digital assets over recent years, with Addentax believing that certain established digital assets could serve as a stable component of their long-term holdings. This move aligns with a broader trend where corporations are adopting Bitcoin as a hedge against inflation and a store of value, reshaping corporate finance norms.
The investment will be financed through the issuance of new shares of the company. The exact number of shares and their pricing are yet to be determined. The deal is governed by a non-binding term sheet, subject to due diligence, negotiations, approvals, and the execution of a definitive agreement.
Addentax's CEO, Mr. Hong Zhida, stated that this initiative supports the company's broader blockchain strategy. He also mentioned that this move could facilitate potential acquisitions of digital assets such as Bitcoin.
In a separate development, U.S.-based healthcare company KindlyMD has announced a merger with David Bailey's new crypto company Nakamoto. The merged company, which has launched with $710 million in fundraising, plans to invest in Bitcoin. However, there are no available public details or disclosures indicating that Addentax Group Corp. is planning to invest in cryptocurrencies other than Bitcoin, including the Official Trump token.
This strategy represents a long-term commitment by Addentax's management to integrate Bitcoin as a core part of its financial and treasury approach. The company emphasizes recognizing Bitcoin not just as a speculative asset but as an increasingly accepted and stable corporate treasury instrument.
The crypto investment is part of Addentax's long-term strategy to build a network of influential crypto holders as part of its shareholders. This move reflects confidence in blockchain technology merging with corporate finance.
- The rising interest in digital assets among institutions, as seen with Addentax Group Corp.'s Bitcoin investment, has led companies to explore technology-driven investments like Bitcoin as a hedge against inflation and store of value, reshaping traditional finance norms.
- Aligning with the broader trend, Addentax Group Corp.'s move to invest in Bitcoin also plans to facilitate potential acquisitions of digital assets such as Bitcoin, further emphasizing its commitment to blockchain technology as part of its long-term financial strategy.
