Addentax Boosts Bitcoin Purchase to $1.3B for 12K BTC

Addentax‘s Bitcoin purchase has reached $1.3 billion as the Chinese textile manufacturer enters a non-binding term sheet to acquire up to 12,000 Bitcoin. This represents a 50% increase from the company’s original 8,000 BTC target announced in May 2025, and also marks one of the largest corporate Bitcoin institutional investment moves in recent months.

Also Read: BlackRock’s Bitcoin ETF Brings More Revenue than S&P 500 Fund

Addentax Bitcoin Purchase Sparks Institutional Interest Amid Market Volatility Risks

Addentax Group website
Source: addentax.com

The Addentax Bitcoin purchase demonstrates how traditional companies are, right now, embracing cryptocurrency as a strategic asset. Addentax Group Corp. (NASDAQ: ATXG) has structured this Bitcoin acquisition deal to be settled through newly issued shares rather than cash, and this provides an innovative financing approach for large-scale digital asset purchases.

Strategic Corporate Bitcoin Investment

Bitcoin price chart showing current market performance
Bitcoin price chart showing current market performance – Source: TradingView

This Bitcoin institutional investment strategy represents a dramatic shift for the textile manufacturer. The proposed Bitcoin acquisition deal would transform Addentax’s balance sheet, given the company’s current market capitalization of just $6.83 million compared to the $1.3 billion Bitcoin purchase.

CEO Hong Zhida stated:

”The company believes that certain established digital assets may serve as a stable component of the Company’s long-term holdings, given their liquidity and increasing institutional interest over recent years.”

The transaction remains subject to negotiation, due diligence, and also regulatory approvals. Critical details including exact Bitcoin quantities, share issuance terms, and pricing mechanisms await finalization at the time of writing.

Market Risks and Regulatory Concerns

Bitcoin market volatility presents significant challenges for the Addentax Bitcoin purchase. The company’s stock has traded below $1 for over a year, and this raises concerns about execution capabilities and also potential share dilution risks.

Bitcoin regulatory risks add complexity to the deal, particularly as Addentax faces Nasdaq compliance issues regarding minimum bid price requirements. The company must regain compliance within 180 days while also navigating the Bitcoin institutional investment approval process.

The proposed Bitcoin acquisition deal follows growing corporate adoption trends, though critics highlight the substantial risks associated with Bitcoin market volatility and regulatory uncertainty affecting large-scale investments.

Also Read: UniCredit Launches BlackRock Bitcoin ETF With Capital Protection

The Addentax Bitcoin acquisition may lead to further company digital asset policy in case it proves a success. This Bitcoin institutional investment will be one of the biggest test cases of conventional companies when it comes to large-scale Bitcoin acquisition transactions despite current issues in the market and as well as in the regulatory systems.

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