Addentax Group Corp. (NASDAQ:ATXG), a China-based diversified business group, stock skyrocketed on Thursday after it announced plans to acquire up to $800 million in crypto via a share-based deal. The stock gave up its gains later.
The company announced plans to acquire up to 8,000 Bitcoins and other major cryptocurrencies, worth around $800 million, through a potential share-based transaction, signaling a major strategic pivot into the digital asset space.
The company is negotiating with several influential cryptocurrency holders to purchase up to 8,000 Bitcoins and assets such as the Official Trump coin. Based on current market prices, the estimated value of the proposed acquisition stands at approximately $800 million. While the discussions are advancing, no definitive agreement has been finalized.
ATXG views the potential transaction as a key component of its long-term strategy to expand its presence in the digital asset space. By issuing common stock in exchange for crypto assets, the company aims to strengthen its balance sheet while bringing experienced crypto investors into its shareholder network.
The targeted holders, who are believed to collectively control roughly 8,000 Bitcoins, bring substantial expertise and connections within the cryptocurrency industry. ATXG intends to leverage these relationships to deepen its market reach and accelerate growth in the blockchain sector.
CEO Hong Zhida said the move is part of a broader strategy to position Addentax within the evolving digital economy. “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,” he said. He added that established digital currencies could serve as stable long-term holdings due to their liquidity and increasing institutional interest.
Related ETFs: Bitwise Crypto Industry Innovators ETF (NYSE:BITQ), Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF)
Price Action: ATXG shares are trading higher by 75.32% at $1.26 at the last check on Thursday.
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