Key Takeaways:
Addentax Group is set to issue common stock in a bid to acquire cryptocurrency assets.
The group’s acquisition includes 8,000 Bitcoin along with the politically-themed memecoin TRUMP.
Addentax not only aims to purchase assets but also to forge strategic alliances within the evolving digital economy.
Chinese logistics and garment company Addentax Group announced plans on May 15 to acquire cryptocurrencies valued up to $800 million, with a specific focus on 8,000 Bitcoin and other tokens like the TRUMP memecoin. The acquisition will be facilitated through the issuance of common stock to a selected group of prominent cryptocurrency holders, although no formal agreement has yet been finalized.
China-based Addentax Eyes $800M Crypto Deal, A Strategic Pivot or Political Signal?
The company indicated that it has been in talks with several “substantial and influential” crypto asset holders. While the specific allocation of the $800 million between Bitcoin and other cryptocurrencies has not been disclosed, Addentax confirmed that those in negotiation possess approximately 8,000 BTC collectively.
This move is part of a larger strategy aimed at bolstering Addentax’s balance sheet by acquiring liquid and widely recognized digital assets, while also engaging influential figures in the cryptocurrency community as shareholders.
BREAKING: PUBLIC CHINESE TEXTILE COMPANY ADDENTAX WILL ISSUE STOCK TO BUY 8,000 #BITCOIN FOR $800 MILLION
CORPORATE BUYING IS GOING VERTICAL pic.twitter.com/133rlv3mzh
— The Bitcoin Historian (@pete_rizzo_) May 15, 2025
The CEO of Addentax, Hong Zhida, emphasized that the initiative aligns with the company’s broader blockchain strategy, which includes potential acquisitions of digital assets like Bitcoin and the courting of strategic investors versed in the crypto sector. “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,” he stated.
Despite this ambitious undertaking, Addentax shares saw a decline of over 8% following the announcement, signaling market skepticism regarding the company’s shift towards digital assets.
While Addentax framed this venture as a strategic investment for the long term, questions arise about possible political implications. The firm operates in the cross-border textile logistics sector, an industry significantly affected by the trade tensions and tariffs implemented during Donald Trump’s presidency.
Adding to the intrigue, another logistics company made headlines two weeks ago by purchasing $20 million worth of TRUMP tokens, seen as a gamble on future political alignments. This activity has sparked speculation regarding Chinese firms exploring means to mitigate regulatory risks or exert indirect influence within an unpredictable geopolitical landscape.
As negotiations continue, Addentax’s movement into the crypto domain reflects a notable trend of traditional companies eyeing digital assets not solely for potential returns, but for the strategic connections that come with them.
Crypto Market Rallies as US-China Ease Trade Tensions
The cryptocurrency market experienced a robust rally on Monday, buoyed by a breakthrough in U.S.-China trade relations. Both countries announced a temporary reduction in tariffs, suggesting a thaw in longstanding economic hostilities.
The agreement, revealed through a joint statement in Geneva, outlines a 90-day negotiation period and includes substantial tariff reductions.
Crypto markets rallied sharply after the United States and China announced an agreement to temporarily reduce tariffs on each other’s goods.#Bitcoin #Ethereum #China https://t.co/x5YW4dcQ8X
— Finance Newso.com (@Finance Newso) May 12, 2025
U.S. tariffs on Chinese products will drop from 145% to 30%, while China will reduce duties on U.S. imports from 125% to 10%. These announcements spurred gains across digital assets, with Bitcoin increasing by 1.62% to $105,322, marking a recovery of 36% from its low in April of $74,500.
Ethereum also saw a rise of 3.13% to $2,560, while Dogecoin led the altcoin market with an increase of 6.29%.
Further fueling market optimism, Donald Trump is set to host a private dinner on May 22 at his golf club in Washington, D.C., attended by the top 220 holders of the TRUMP meme coin. The invite-only event will feature a discussion about the future of cryptocurrency.
According to CoinGecko, TRUMP tokens gained 3.9% over the past week, climbing to $12.86, although trading volume fell nearly 28% in the last 24 hours.
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