Addentax Group Targets $800 Million Crypto Acquisition Through Stock Issuance

After Addentax Group Corp. announced its plan to acquire up to $800 million in Bitcoin and other cryptocurrencies, its stock ($ATXG) sharply declined. The stock closed on May 15 at $0.67, down 6.75% for the day. In after-hours trading, the decline accelerated, dropping another 10.45% to $0.60. 

Addentax Group Corp Stock. Source: Google Finance

This proposed acquisition represents a strategic pivot in Addentax’s long-term roadmap, underlining its growing commitment to blockchain innovation and digital asset investments. By pursuing this move, the company seeks to strengthen its balance sheet with highly liquid digital assets and aims to bring influential crypto stakeholders into its shareholder base. This approach could bolster both financial resilience and industry connectivity.

To reinforce this, CEO Hong Zhida emphasized that the initiative aligns with Addentax’s broader blockchain strategy.

“By acquiring established digital assets like Bitcoin and involving experienced crypto investors, we aim to build long-term value and stability,”

Zhida said. He added that the move also responds to the increasing institutional appetite for digital assets as dependable financial instruments.

In a related development underscoring the momentum behind institutional crypto adoption, Japanese investment firm Metaplanet has expanded its Bitcoin holdings by purchasing an additional 555 BTC. The firm disclosed spending approximately $53.4 million on the acquisition, securing the coins at an average price of $96,134 each. This move further signals rising confidence among major players in Bitcoin’s long-term value and its role within diversified investment strategies.

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