Quick take:
The company said it also plans to invest in other cryptocurrencies such as the Offical Trump (TRUMP) token.
The crypto investment will be financed by issuing shares of common stock, subject to reaching a definitive agreement.
The initiative is part of the company’s efforts to support its long-term crypto strategy while building a network of influential crypto holders as part of its shareholders.
Addentax Group Corp. (NASDAQ: ATXG), a Chinese garment manufacturer has become the latest company from the traditional industries to explore opportunities in digital assets.
According to a press release seen by NFTgators on Thursday, Addentax plans to acquire 8,000 bitcoins and other cryptocurrencies like the Official Trump (TRUMP) token, subject to reaching a definitive agreement.
The Nasdaq-listed company plans to raise $800 million to finance the investment by issuing shares of common stock, which is part of its long-term crypto strategy that focuses on building a network of influential crypto holders as part of its shareholders.
Addentax is specifically targeting highly liquid and widely recognized digital assets, which it believes will strengthen its balance sheet.
Commenting on the announcement, Mr. Hong Zhida, the CEO of Addentax said in a statement: “This initiative supports the Company’s broader blockchain strategy by facilitating potential acquisitions of digital assets such as Bitcoin and introducing strategic investors with experience in the crypto ecosystem.”
According to Zhida, the company believes 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.
Addentax is not the only company from traditional industries to explore opportunities in the digital assets space.
More recently, U.S.-based healthcare company, KindlyMD announced a merger with David Bailey’s new crypto company Nakamoto to form a Bitcoin treasury. The company launched with $710 million in fundraising including a $510 million PIPE and a $200 million convertible note to finance investments in BTC.
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