The lesser-known Chinese company Addentax Group Corp. (ATXG) has announced an ambitious plan: by issuing new shares, it aims to acquire up to $800 million worth of cryptocurrencies, specifically Bitcoin and the meme-based TRUMP token.
The Nasdaq-listed textile and logistics firm is currently in talks with major crypto holders who reportedly control up to 8,000 BTC and other digital assets. The company plans to exchange its newly issued shares for cryptocurrencies to strengthen its position in the digital space.
š¦ ATXG to Issue Stock in Exchange for Crypto Assets
ATXG stated that it intends to issue new common shares to crypto holders in return for digital assets. This move is part of the companyās long-term investment and asset-holding strategy.
Negotiations are reportedly underway with individuals and institutions with deep experience in the crypto market and extensive networks. CEO Hong Zhida described the move as a critical part of the companyās blockchain strategy, adding that it aims to attract crypto-savvy investors to its shareholder base.
š¼ Crypto Holdings to Improve Company Balance Sheet
Addentax believes that acquiring liquid, widely traded assets like BTC will help strengthen its balance sheet and make the company more attractive to investors involved in digital finance.
While no binding agreements have been signed yet, and no timeline has been provided, the company described this acquisition as a ākey stepā in its crypto expansion strategy.
š GD Culture Groupās Similar Move Raises Eyebrows
The announcement comes shortly after another obscure Chinese firm, GD Culture Group, disclosed a $300 million crypto investment in BTC and TRUMP tokens. Despite having only eight employees and no reported revenue last year, GD Culture made the investment by selling shares to an undisclosed entity based in the British Virgin Islands.
The lack of transparency has sparked concern, especially as the TRUMP token is widely seen as a political meme coin with no clear use case or intrinsic value.
š§Æ Trump-Linked Crypto Projects Under Regulatory Scrutiny
At the same time, crypto projects associated with Donald Trump are facing increased scrutiny from U.S. regulators. Democrats in the House of Representatives have called on the Treasury Department to release suspicious activity reports (SARs) related to Trump-linked crypto initiatives.
One focus is Movement Labs, a project backed by World Liberty Financial (WLFI), which is known to have ties to Trump. Leaked documents reveal that the firm failed to disclose agreements with early investors, raising concerns over transparency. Following these revelations, the MOVE token dropped more than 6%.
Lawmakers are warning about potential conflicts of interest and are urging further investigations ā all amid heightened scrutiny of the role of crypto in political finance.
š ATXG Eyes Full Integration Into the Digital Economy
ATXG emphasized that it views cryptocurrencies like Bitcoin as increasingly institutional-grade assets. By acquiring these digital assets and expanding its shareholder base with crypto-experienced investors, the company aims to boost its market position and financial resilience.
ATXG also sees this strategy as a gateway to deeper integration with the crypto ecosystem, even in the face of growing regulatory pressures.
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