The company says the potential acquisition would be funded through the issuance of new ATXG shares, but has yet to finalize critical details such as pricing, quantity of shares to be sold, or exact transaction terms. Addentax emphasized the agreement is preliminary and remains subject to due diligence and regulatory approval.

Despite its bold ambitions, Addentax’s market cap sits below $7 million, with its stock trading under $1 for more than a year. The scale of the proposed crypto investment has sparked skepticism among analysts, with concerns over potential share dilution and volatility.

This isn’t the company’s first crypto-related headline. In May, Addentax said it was in talks to acquire assets linked to memecoin investors—including the TRUMP token—for $800 million, though no deal materialized.

As traditional firms increasingly explore crypto treasury strategies, some critics warn that announcements like these may serve more to drive market speculation than long-term financial transformation. The 2017 case of Long Island Iced Tea rebranding to Long Blockchain Corp.—and its stock briefly soaring—remains a cautionary tale.

The post Chinese Firm Plans $1.3B Bitcoin Buy—With a $7M Market Cap appeared first on Coindoo.

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Filed under: Bitcoin - @ July 3, 2025 9:00 am