Addentax Plans Large Bitcoin Acquisition Amid Valuation Concerns

• Lyla Velez
• July 2, 2025
• Business
• 0 Comments

Addentax Group Corp., a US-listed company, announced its intention on July 2, 2025, in Shenzhen, China, to acquire up to 12,000 Bitcoin through new share issuance, raising questions due to its $6.83 million market valuation.

This announcement matters due to Addentax’s potential shift in strategy with extensive crypto investment plans, despite its small valuation.

Valuation Concerns

Addentax Group Corp., primarily in garment manufacturing and logistics, plans to issue new shares to acquire up to 12,000 Bitcoin. The company’s small market cap of $6.83 million has led to skepticism about the feasibility of such a large purchase.

The decision to invest heavily in Bitcoin reflects a strategic shift in the company’s investment philosophy. Their ambition is stark given the company’s current valuation, raising doubts among market observers and highlighting a potentially risky approach.

Market Implications

The move has caught the financial community’s attention, with discussions about the potential implications for both Addentax and the wider market. The intended purchase signals confidence in Bitcoin’s bullish momentum. Still, the concerns highlight the broader industry discussions surrounding corporate crypto investments.

Historically, few companies with such limited valuations have announced massive crypto acquisitions, typically seen in larger firms like MicroStrategy. Regulatory scrutiny may follow, considering Bitcoin’s volatile nature and Addentax’s valuation, leading to possible financial and compliance repercussions.

Industry Response

Addentax’s proposal invites scrutiny owing to the significant gap between their market cap and the acquisition scale. This plan is subject to due diligence and underscores the continuing interplay between traditional corporate structures and the evolving crypto market landscape.

Addentax Group Corp. stated, “…has entered into a non-binding term sheet with a substantial and independent Bitcoin holder to acquire up to 12,000 Bitcoins, significantly increasing the potential acquisition size from the originally discussed 8,000 BTC…” PR Newswire.

For more information about their strategic and financial moves, visit Tax Solutions and Strategies for Businesses.