A Small Chinese Company Is Spending $800M to Acquire Bitcoin and the TRUMP Meme Token

Addentax Group Corp. (Nasdaq: ATXG), a textile and logistics firm, disclosed that it is in talks with several cryptocurrency holders to acquire digital assets worth up to $800 million.

A small Chinese company, Addentax Group Corp (NASDAQ:ATXG), is planning to acquire a large portfolio of cryptocurrency assets, including Bitcoin and the meme-based TRUMP token, in exchange for shares of its common stock.

Addentax, a textile and logistics firm, disclosed in a statement on Thursday that it is in talks with several cryptocurrency holders to buy digital assets worth up to $800 million. These discussions include the potential acquisition of up to 8,000 Bitcoins and other tokens like Official Trump, which is associated with former President Donald Trump, through the issuance of new shares of common stock.

No binding agreements have been reached yet, and the company said that the talks involve "influential" crypto holders who are "key participants" in the sector.

The company stated that it would be issuing new common stock to the holders of various cryptocurrencies in exchange for the digital assets. Addentax noted that it is engaging with individuals and entities who are said to collectively hold around 8,000 BTC, adding that these investors have "proven track records" and "deep networks" within the cryptocurrency space.

"This initiative supports the Company’s broader blockchain strategy," said CEO Hong Zhida in a statement. He also added that the move would bring "experienced crypto investors" to the company's shareholder register.

Addentax Group believes that this move could improve its balance sheet by bringing in liquid and widely traded digital assets, while also attracting shareholders with experience in digital markets.

The announcement from Addentax Group comes shortly after another little-known Chinese firm, GD Culture Group, revealed a large investment in crypto.

According to a securities filing reported by The New York Times, GD Culture Group (NASDAQ:GDGD) said it had acquired $300 million worth of Bitcoin and TRUMP tokens. Despite having only eight employees and reporting zero revenue last year, GD Culture made the investment through a stock sale to an undisclosed entity based in the British Virgin Islands.

The lack of details around the deal has drawn attention from market observers, especially given that GD Culture's stock price increased tenfold last year as it pivoted from making vinyl records to focusing on blockchain technology.

The TRUMP token, which is a meme coin with no use case or intrinsic value, has seen attention rise in recent months, especially due to its association with former President Trump. Some investors believe the token could be used as a tool to gain influence or access in political circles.

At the same time, there is growing attention from regulators on crypto ventures linked to President Donald Trump. On Capitol Hill, House Democrats are seeking records from the Treasury Department regarding suspicious financial activities involving Trump-related crypto efforts.

A letter sent to Treasury Secretary Scott Bessent requested access to suspicious activity reports (SARs) connected to Trump's cryptocurrency projects. The letter was signed by leading Democrats from three major House committes.

The request comes as part of an investigation into a crypto project backed by an affiliate of Trump's company, Movement Labs, which is also facing criticism.

According to a report by The Washington Post, leaked documents suggest that the project, which is backed by Donald Trump-affiliated World Liberty Financial (WLFI), failed to disclose deals made with early investors, raising concerns about transparency. The price of MOVE, the project's token, dropped more than 6% following these reports.

Lawmakers have pointed to possible conflicts of interest and are calling for further investigation. These developments come at a time when crypto-related political finance is under broader scrutiny from both federal regulators and watchdog groups.

ATXG highlighted that its current move is part of a broader plan to engage with blockchain technology and digital finance. Management also pointed out that they view digital assets like Bitcoin as being liquid and increasingly accepted by institutional investors.

By acquiring these assets and adding crypto-experienced investors to its shareholder base, ATXG aims to improve its market position and financial strength. The company also views this strategy as a step toward building closer relationships within the cryptocurrency ecosystem.

ATXG has not yet disclosed a timeline for when a deal may be finalized, and all talks are currently non-binding. However, the company described the acquisition plan as a "core action" of its crypto strategy.