A small Chinese language firm has introduced plans to accumulate a big portfolio of cryptocurrency property, together with Bitcoin and the meme-based TRUMP token, utilizing stock-based financing. Addentax Group Corp. (Nasdaq: ATXG), a textile and logistics agency, disclosed that it’s in talks with a number of cryptocurrency holders to accumulate digital property value as much as $800 million.
These discussions are centered round buying as much as 8,000 Bitcoins and different tokens like Official Trump by the issuance of latest shares of frequent inventory. No binding agreements have been made but, however the firm mentioned that the talks contain influential crypto holders with a powerful presence within the sector.
ATXG Plans to Subject Inventory in Change for Crypto Property
Addentax said that its method entails issuing new frequent inventory to holders of varied cryptocurrencies in alternate for digital property. Based on the corporate, the purpose is to make use of these property as a part of a long-term funding and holding technique.
The agency defined that discussions have been held with people and entities believed to collectively maintain roughly 8,000 BTC. ATXG described them as skilled market contributors with in depth networks within the cryptocurrency world.
“This initiative helps the Firm’s broader blockchain technique,” mentioned CEO Hong Zhida. He additionally added that the transfer will assist deliver skilled crypto buyers onto the corporate’s shareholder register.
Addentax Group believes that this transfer may enhance its steadiness sheet by bringing in liquid and extensively traded digital property, whereas additionally attracting shareholders with expertise in digital markets.
Associated Strikes by GD Tradition Group Elevate Questions
Addentax Group’s announcement comes shortly after GD Tradition Group, one other little-known Chinese language agency, revealed a large investment in crypto. Based on a securities submitting reported by The New York Occasions, GD Tradition Group mentioned it had acquired $300 million value of Bitcoin and TRUMP tokens.
Regardless of having solely eight workers and reporting zero income final 12 months, GD Tradition made the funding by a inventory sale to an undisclosed entity primarily based within the British Virgin Islands. The shortage of particulars across the deal has drawn consideration from market observers.
The TRUMP token, created as a meme coin with political associations, has seen rising consideration, though it lacks any underlying use case or intrinsic worth. Stories counsel some buyers view it as a device to achieve affect or entry in political circles.
Donald Trump-Linked Crypto Tasks Face Regulatory Scrutiny
On the identical time, there may be rising regulatory attention on crypto ventures tied to President Donald Trump. On Capitol Hill, Home Democrats are in search of information from the Treasury Division concerning suspicious monetary actions involving Trump-related crypto efforts.
A letter despatched to Treasury Secretary Scott Bessent requested entry to suspicious exercise stories (SARs) related to Trump’s cryptocurrency tasks. The letter was signed by main Democrats from three main Home committees.
In the meantime, Motion Labs, which is backed by Donald Trump-affiliated World Liberty Monetary (WLFI), can also be going through criticism. Leaked paperwork counsel the venture didn’t disclose offers made with early buyers, elevating considerations about transparency. The value of MOVE, the venture’s token, dropped greater than 6% following these stories.
Lawmakers have pointed to possible conflicts of interest and are calling for additional investigation. These developments come at a time when crypto-related political finance is underneath wider scrutiny from each federal regulators and watchdog teams.
ATXG Pursues Growth into Digital Asset Market
ATXG emphasised that its present transfer is a part of a broader plan to have interaction with blockchain know-how and digital finance. Administration sees digital property like Bitcoin as being liquid and more and more accepted by institutional buyers.
By buying these property and including crypto-experienced buyers to its shareholder base, ATXG goals to enhance its market place and monetary power. The corporate additionally views this technique as a step towards constructing nearer relationships inside the cryptocurrency ecosystem.
ATXG has not supplied a timeline for when a deal could also be finalized, and all talks are at the moment non-binding. Nevertheless, the corporate described the acquisition plan as a “core motion” of its crypto technique.
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