Nasdaq-listed Chinese textile company Addentax Group has announced a non-binding agreement to purchase up to 12,000 Bitcoin—worth roughly $1.3 billion—dramatically increasing its previous May target of 8,000 BTC.
The company says the potential acquisition would be funded through the issuance of new ATXG shares, but has yet to finalize critical details such as pricing, quantity of shares to be sold, or exact transaction terms. Addentax emphasized the agreement is preliminary and remains subject to due diligence and regulatory approval.
Despite its bold ambitions, Addentax’s market cap sits below $7 million, with its stock trading under $1 for more than a year. The scale of the proposed crypto investment has sparked skepticism among analysts, with concerns over potential share dilution and volatility.
This isn’t the company’s first crypto-related headline. In May, Addentax said it was in talks to acquire assets linked to memecoin investors—including the TRUMP token—for $800 million, though no deal materialized.
As traditional firms increasingly explore crypto treasury strategies, some critics warn that announcements like these may serve more to drive market speculation than long-term financial transformation. The 2017 case of Long Island Iced Tea rebranding to Long Blockchain Corp.—and its stock briefly soaring—remains a cautionary tale.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is passionate about questions of meaning. He is a fluent German speaker as well as He has been in the crypto space for more than three years and has an eye for spotting emerging trends in the world of digital currencies. Whether providing in-depth analysis or reporting on all topics on a daily basis, his deep understanding and enthusiasm for what he does makes him a valuable addition to the team.
Source: https://coindoo.com/chinese-firm-plans-1-3b-bitcoin-buy-with-a-7m-market-cap/