Chinese textile manufacturer Addentax Group Corp. (NASDAQ: ATXG) has stunned the financial and crypto markets by announcing a substantial increase in its Bitcoin acquisition plan. The company has entered a non-binding term sheet to purchase up to 12,000 BTC, raising the total value of the proposed deal to a staggering $1.3 billion. This move marks a 50% jump from the 8,000 BTC target disclosed just two months ago in May 2025.
Despite operating in a traditional industry, Addentax is embracing digital assets as a strategic investment, becoming one of the latest, institutional players to join the Bitcoin bandwagon amid ongoing market uncertainty.
Share-Based Settlement for a Massive Crypto Play
What makes the deal particularly interesting is the financing structure. Instead of using cash reserves, Addentax intends to settle the purchase using newly issued shares. This creative mechanism allows the company to make a substantial bet on digital assets without draining operational liquidity.

Bitcoin price chart showing current market performance – Source: TradingView
Such a structure might be innovative, but it doesn’t come without risk. Addentax’s market capitalisation is only $6.83 million, dwarfed by the $1.3 billion Bitcoin acquisition. The resulting share dilution could significantly affect existing shareholders, depending on the final pricing and issuance terms, which are still under negotiation.
CEO Hong Zhida justified the move, stating:
“The company believes that certain established digital assets may serve as a stable component of the Company’s long-term holdings, given their liquidity and increasing institutional interest over recent years.”
Balancing Ambition with Regulatory and Market Realities
Addentax’s strategic pivot toward Bitcoin comes at a time of high market volatility and mounting regulatory scrutiny. The company’s stock has been trading below $1 for over a year, placing it at risk of Nasdaq delisting unless it regains compliance with the minimum bid price requirement within 180 days.
This makes the deal doubly complex, as Addentax must navigate not only the logistics of acquiring and securing 12,000 BTC, but also the regulatory maze surrounding large-scale digital asset investments. Finalisation of the deal is still pending due diligence, pricing negotiations, and regulatory approvals, all of which may introduce delays or even jeopardise the acquisition entirely.
Implications for the Broader Market
If successful, Addentax’s entry into the Bitcoin market could signal a broader shift among non-tech and non-financial firms toward crypto as a treasury asset. This would mirror the pioneering moves by companies like MicroStrategy, though Addentax’s industry background makes its decision particularly noteworthy.
However, critics argue that the timing and scale of the investment are risky, especially given Bitcoin’s price fluctuations and the company’s precarious stock position. Yet, should the acquisition succeed and Bitcoin prices rally, Addentax may not only stabilise its financials but also emerge as a case study in corporate crypto adoption.
Addentax’s $1.3 billion Bitcoin acquisition plan is both ambitious and unconventional, especially for a traditional Chinese textile firm with a modest market cap. While the deal remains unconfirmed and carries significant execution and regulatory risks, it reflects growing institutional interest in Bitcoin as a long-term asset class.
Whether it turns into a bold masterstroke or a cautionary tale will depend heavily on regulatory approval, market movements, and Addentax’s ability to convince stakeholders that its Bitcoin strategy is more than just a speculative play.