Chinese Giant Planning to Buy Bitcoin and Meme Coins Increases Target by 50%: Exceeds Billion Dollars!

The Nasdaq-listed company Addentax Group, based in China, announced that it has signed a new agreement to purchase 12,000 Bitcoin (BTC) with a total value of approximately $1.3 billion.

Addentax Group (ATXG), a textile and logistics company operating in Shenzhen, China, is expanding its investment targets in the cryptocurrency market. The company, which is traded on the Nasdaq, signed a non-binding term sheet with an independent and large-scale Bitcoin investor for a massive purchase worth approximately $1.3 billion.

Addentax initially announced in May that it would buy 8,000 Bitcoin. However, with the new announcement, the company has raised this target by 50% to 12,000 Bitcoin. Although the purchase will be financed by the sale of the company's shares traded on Nasdaq, the fact that the company's current market value is only around $7 million is drawing investors' attention. This situation has raised concerns among investors about high volatility and dilution risks.

Critical Details Remain Uncertain

Many critical points of this purchase plan announced by Addentax remain uncertain. The company's statement indicated that key information such as the number of Bitcoins to be purchased, the total number of shares to be issued, and the pricing per share have yet to be determined.

Recently, many small-scale companies' cryptocurrency moves have been met with skepticism among investors. For example, events occurred in the past when Long Island Iced Tea Corp. changed its name to 'blockchain,' leading to speculative increases in stock prices. For this reason, experts are urging investors to be cautious in the face of large-scale cryptocurrency announcements from companies like Addentax that have micro market capitalizations.