Addentax Group Corp. announced plans to acquire up to $800 million in Bitcoin and other digital assets. This move represents a significant event in the cryptocurrency market.
Details of the Upcoming Acquisition
On May 15, Addentax Group Corp. announced that it is in discussions to acquire up to $800 million in Bitcoin and other digital assets, including the Official Trump token. Although no binding agreements have been reached, the company is engaging with several prominent cryptocurrency holders believed to collectively control approximately 8,000 BTC.
Market Reaction to the Announcement
Following the announcement of the acquisition plans, the company’s stock ($ATXG) sharply declined. The stock closed on May 15 at $0.67, down 6.75% from the previous day. After-hours trading saw the decline accelerate another 10.45%, bringing it down to $0.60.
Addentax's Strategy in the Cryptocurrency Sector
This proposed acquisition represents a strategic pivot in Addentax’s long-term roadmap, highlighting its growing commitment to blockchain innovation and digital asset investments. CEO Hong Zhida noted that the initiative aligns with Addentax’s broader blockchain strategy aimed at building long-term value and stability. He stated that the move also responds to the increasing institutional appetite for digital assets.
Addentax Group Corp.'s plans to acquire significant volumes of digital assets may impact the company's future developments and strengthen its position in the cryptocurrency sector, despite recent stock fluctuations.
