Addentax Group plans to spend $800 million on cryptocurrencies, acquiring 8,000 BTC and Trump tokens, while trying to establish strategic partnerships in the crypto space. CEO Hong Zhida has pitched the move as a way to strengthen its balance sheet and attract knowledgeable investors. The initiative comes amidst wider market shifts related to U.S.-China trade relations, indicating a possible political angle to Addentax’s strategy.
In an ambitious move, China’s Addentax Group, a logistics and garment company, plans to acquire up to $800 million in cryptocurrencies, which notably includes 8,000 Bitcoin alongside some Trump-themed memecoins. This announcement came on May 15, as the firm detailed its strategy to bolster its financial standing by issuing common stock to major crypto holders. However, they’ve yet to finalise any agreements.
The firm hasn’t disclosed the exact distribution of funds among Bitcoin and other crypto assets but did note that they are in talks with influential players in the crypto space who reportedly control around 8,000 BTC. This effort by Addentax is part of a wider strategy to enhance its assets by obtaining liquid and well-regarded digital currencies while also attempting to recruit established figures from the cryptocurrency sector into its shareholder network.
Hong Zhida, the CEO of Addentax, commented on the initiative, stating, “This supports the Company’s broader blockchain strategy, facilitating potential acquisitions of digital assets and bringing in strategic investors experienced in the crypto field.” He remarked that established digital assets could serve as stable additions to Addentax’s long-term holdings, particularly given their liquidity and growing interest from institutional investors.
Following this disclosure, the market reacted, and Addentax shares slid more than 8%, indicating investor scepticism regarding the shift towards digital currency asset holdings. While the company framed this move as a long-term investment, many critics wonder if political motivations are behind the timing.
Addentax operates in textile logistics, a sector that has been notably affected by previous U.S.-China trade tensions. Interestingly, just weeks earlier, another logistics firm was reported to have invested about $20 million in TRUMP tokens, which raises speculation about Chinese companies looking to navigate regulatory challenges and secure influence amid ongoing geopolitical shifts.
In a related development, the crypto market is feeling optimistic following easing tensions between the U.S. and China. Both nations have agreed to temporarily cut tariffs, as per a joint statement released in Geneva. The 90-day negotiation window suggests hope for better trade relations—this news significantly boosted crypto prices.
Bitcoin’s price rose by 1.62% to $105,322, marking a rebound of 36% since its low in April. Ethereum also benefited, climbing by 3.13% to $2,560. Even Dogecoin saw an uptick, advancing 6.29%. The positive momentum was augmented by Donald Trump’s upcoming dinner event at his golf club for the top holders of the Memecoin $TRUMP. This private gathering is further stoking interest in the political and financial crossover of digital currencies.
