A small Chinese firm has introduced plans to purchase a big portfolio of cryptocurrency property, together with Bitcoin and the meme-based TRUMP token, utilizing stock-based financing. Addentax Group Corp. (Nasdaq: ATXG), a textile and logistics agency, disclosed that it’s in talks with a number of cryptocurrency holders to purchase digital property price up to $800 million.
These discussions are centered round buying up to 8,000 Bitcoins and different tokens like Official Trump by means of the issuance of recent shares of widespread inventory. No binding agreements have been made but, however the firm stated that the talks contain influential crypto holders with a powerful presence within the sector.
ATXG Plans to Issue Stock in Exchange for Crypto Assets
Addentax said that its method includes issuing new widespread inventory to holders of assorted cryptocurrencies in alternate for digital property. According to the corporate, the purpose is to use these property as a part of a long-term funding and holding technique.
The agency defined that discussions have been held with people and entities believed to collectively maintain roughly 8,000 BTC. ATXG described them as skilled market contributors with in depth networks within the cryptocurrency world.
“This initiative supports the Company’s broader blockchain strategy,” stated CEO Hong Zhida. He additionally added that the transfer will assist carry skilled crypto traders onto the corporate’s shareholder register.
Addentax Group believes that this transfer might enhance its stability sheet by bringing in liquid and broadly traded digital property, whereas additionally attracting shareholders with expertise in digital markets.
Related Moves by GD Culture Group Raise Questions
Addentax Group’s announcement comes shortly after GD Culture Group, one other little-known Chinese agency, revealed a large investment in crypto. According to a securities submitting reported by The New York Times, GD Culture Group stated it had acquired $300 million price of Bitcoin and TRUMP tokens.
Despite having solely eight staff and reporting zero income final yr, GD Culture made the funding by means of a inventory sale to an undisclosed entity primarily based within the British Virgin Islands. The lack of particulars across the deal has drawn consideration from market observers.
The TRUMP token, created as a meme coin with political associations, has seen rising consideration, though it lacks any underlying use case or intrinsic worth. Reports recommend some traders view it as a instrument to achieve affect or entry in political circles.
Donald Trump-Linked Crypto Projects Face Regulatory Scrutiny
At the identical time, there may be rising regulatory attention on crypto ventures tied to President Donald Trump. On Capitol Hill, House Democrats are searching for data from the Treasury Department concerning suspicious monetary actions involving Trump-related crypto efforts.
A letter despatched to Treasury Secretary Scott Bessent requested entry to suspicious exercise reviews (SARs) linked to Trump’s cryptocurrency initiatives. The letter was signed by main Democrats from three main House committees.
Meanwhile, Movement Labs, which is backed by Donald Trump-affiliated World Liberty Financial (WLFI), can be dealing with criticism. Leaked paperwork recommend the challenge failed to disclose offers made with early traders, elevating issues about transparency. The worth of MOVE, the challenge’s token, dropped greater than 6% following these reviews.
Lawmakers have pointed to possible conflicts of interest and are calling for additional investigation. These developments come at a time when crypto-related political finance is underneath wider scrutiny from each federal regulators and watchdog teams.
ATXG Pursues Expansion into Digital Asset Market
ATXG emphasised that its present transfer is a part of a broader plan to interact with blockchain expertise and digital finance. Management sees digital property like Bitcoin as being liquid and more and more accepted by institutional traders.
By buying these property and including crypto-experienced traders to its shareholder base, ATXG goals to enhance its market place and monetary power. The firm additionally views this technique as a step towards constructing nearer relationships throughout the cryptocurrency ecosystem.
ATXG has not offered a timeline for when a deal could also be finalized, and all talks are at present non-binding. However, the corporate described the acquisition plan as a “core action” of its crypto technique.
Kelvin Munene Murithi
Kelvin is a distinguished author with experience in crypto and finance, holding a Bachelor’s diploma in Actuarial Science. Known for his incisive evaluation and insightful content material, he possesses a powerful command of English and excels in conducting thorough analysis and delivering well timed cryptocurrency market updates.
Disclaimer: The offered content material might embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability on your private monetary loss.
