China-based Addentax Group, a logistics and garment firm, announced plans to acquire up to $800 million worth of cryptocurrencies, notably including approximately 8,000 Bitcoin (BTC) and TRUMP tokens, a politically themed memecoin. The intention is to issue common stock in exchange for these digital assets through negotiations with major crypto holders, although no final agreement has been reached.
The move is part of Addentax’s broader blockchain strategy to strengthen its balance sheet by acquiring liquid and widely recognized digital assets and to build strategic alliances with influential crypto investors. CEO Hong Zhida highlighted that selected digital assets like Bitcoin could serve as stable long-term holdings due to their liquidity and growing institutional interest.
Despite the announcement, Addentax’s stock price fell by over 8%, reflecting investor skepticism about the company's pivot to crypto. The firm's choice to include TRUMP tokens exclusively among altcoins raised speculation about political motivations. TRUMP tokens have garnered attention due to their association with former U.S. President Donald Trump and ongoing geopolitical and trade tensions between the U.S. and China.
The acquisition may also relate to mitigating impacts from tariffs imposed during Trump’s administration affecting cross-border textile logistics. Recently, other similar firms purchased TRUMP tokens, fueling rumors about Chinese companies exploring crypto to hedge regulatory risks or navigate geopolitical issues.
Meanwhile, the broader crypto market rallied following a temporary U.S.-China tariff reduction agreement, boosting Bitcoin and Ethereum prices. Concurrently, Donald Trump plans a private event for TRUMP token holders, adding to bullish momentum for the meme coin, which saw a price increase this week despite lower recent trading volume.