Bitcoin Buying Spree Boosts Addentax Shares Initially, but Subsequent Sales Cause a Decline
A Chinese Investment Firm Shakes Up The Crypto World
Attention's been focused on Addentax Group Corp., a company based in Shenzhen and listed on Nasdaq under the symbol ATXG, after revealing a whopping $800 million investment in **Bitcoin, TRUMP memecoin, and other cryptocurrencies. This bombshell announcement sent shockwaves through the market, causing a temporary surge in the company's stock price before it plummeted even further.
Quick Facts
- Addentax plans to acquire 8,000 Bitcoin, TRUMP, and other digital assets.
- The company's stock (ATXG) briefly spiked to $1.68 after the announcement but has since dipped to $0.61.
- Apart from crypto, Addentax operates in traditional sectors such as garments, logistics, and property.
- The company calls this move a strategic shift towards blockchain-related investments.
Thursday saw Addentax share its ambitious crypto investment plans. In exchange for these digital assets, the company plans to issue new common stock. In the immediate aftermath of the news, ATXG shares skyrocketed from $0.72 to $1.68. However, the elation didn't last long, with the stock price swiftly falling back to $0.61, down nearly 9% in the past 24 hours and more than 20% for the week.
Treading Unfamiliar Waters
It's essential to note that Addentax isn't your typical crypto player. The company is deeply rooted in the garment manufacturing, logistics, property management, and subleasing sectors. Yet, Addentax claims that the decision to dive into crypto is part of a broader move towards blockchain-related investments.
CEO Hong Zhida shed light on the rationale behind the decision: "We’re betting big on certain digital assets. Given their liquidity and increasing institutional interest over recent years, we believe these assets can serve as a stable component of our long-term holdings."
Forging Ahead
Addentax also hinted at ongoing discussions with significant Bitcoin and other cryptocurrency holders. These negotiations aim to secure the assets for the company. Though details remain scarce, Addentax hinted at this crypto move being part of its larger blockchain vision.
Investors seem torn between the potential opportunities presented by Addentax's foray into the crypto arena and concerns over the stock's volatility and questionable investment choices in some of the tokens planned for acquisition.
- Addentax, traditionally involved in sectors such as garments, logistics, and property, is venturing into crypto as part of a broader move towards blockchain-related investments, investing $800 million in Bitcoin and other digital assets.
- In its quest to secure Bitcoin and other cryptocurrencies for the company, Addentax is reportedly engaging in discussions with significant holders, aiming to build upon its blockchain vision and potentially provide a stable component for its long-term holdings.
