Addentax Doubles Its Bitcoin Purchase, But Specific Plans Remain Murky

Nasdaq-listed Addentax Group Corp., a Shenzhen-based microcap company, has announced plans to acquire up to 12,000 bitcoin in a deal valued at approximately $1.3 billion.

This bold move marks a 50% increase from the company’s initial May proposal to purchase 8,000 bitcoin as part of its evolving crypto treasury strategy.

Despite the headline-grabbing announcement, many crucial details of this plan remain very murky. For example, Addentax has not specified the final number of bitcoin it intends to acquire, the number of shares it will issue to fund the purchase, or the pricing terms for those shares.

The company intends to finance the acquisition through the sale of newly issued shares of its Nasdaq-listed stock.

This ambitious plan stands in stark contrast to Addentax’s current financial position. As of July 2025, the company’s market capitalization is under $7 million, and its stock has traded below $1 per share for more than a year.

The vast gap between the proposed bitcoin purchase and Addentax’s market value has raised concerns among analysts about potential shareholder dilution and increased volatility.

Addentax has emphasized that the current agreement is non-binding and serves as a preliminary framework, which remains subjected to change based on several factors, including the negotiation and execution of a definitive agreement, satisfactory completion of due diligence, and customary regulatory and corporate approvals.

The final terms—including the number of bitcoin to be acquired and the number of shares to be issued—will be determined through further negotiations.

Addentax Accused Of Generating Buzz

Originally a clothing manufacturer, Addentax is among a growing cohort of companies announcing plans to build crypto treasuries.

While some firms have successfully executed large-scale token acquisitions, others have faced skepticism, with critics suggesting that such announcements are sometimes used to generate market buzz.

This trend draws comparisons to the 2017 episode when Long Island Iced Tea Corp. rebranded as a blockchain company to capitalize on crypto hype.

Addentax raised several eyebrows in May when it first disclosed it was in talks with several influential crypto market participants, including holders of the TRUMP memecoin, regarding potential crypto purchases valued at around $800 million.

As with the latest announcement, the company was careful to note that no definitive agreement had been reached at that time.