Addentax Group Corp. Announces Ambitious Bitcoin Acquisition Plan

In a bold move that underscores its strategic pivot towards digital assets, Addentax Group Corp. (Nasdaq: ATXG), a Moroccan industrial textile printing and garment decoration company, has entered into a non-binding term sheet to acquire up to 12,000 Bitcoins. This transaction, valued at approximately US$1.3 billion, marks a significant escalation from the previously discussed target of 8,000 BTC, as announced in May 2025. The acquisition, if finalized, will be settled through the issuance of newly issued shares of the company’s common stock.

Strategic Expansion into Digital Assets

The proposed acquisition is a testament to Addentax Group’s forward-looking strategy, aiming to leverage Bitcoin’s global recognition, liquidity, and current bullish momentum. This move aligns with the company’s broader objective to diversify its investment portfolio and capitalize on the burgeoning digital asset market. The final terms of the acquisition, including the exact number of Bitcoins, the number of shares to be issued, and the pricing, are subject to further negotiation, due diligence, and customary approvals.

Financial Performance and Market Reaction

Despite the promising venture into digital assets, Addentax Group’s recent financial performance has raised concerns. The company reported a loss per share of $0.32 for the quarter ending March 31, 2025, a slight increase from the $0.29 loss per share in the same quarter of the previous year. Revenue for the quarter stood at $0.9 million, marking a 28.46% decrease from the $1.3 million reported in the prior year’s quarter. For the fiscal year, the company’s earnings per share (EPS) were reported at -$0.85, compared to -$0.71 in the previous year, with total revenue declining by 18.83% to $4.18 million from $5.15 million.

Market Position and Outlook

As of June 30, 2025, Addentax Group’s stock closed at $0.697, significantly below its 52-week high of $1.86 and above its 52-week low of $0.485. The company’s strategic move into Bitcoin acquisition could potentially catalyze a positive shift in investor sentiment, given the asset’s high-profile status and the company’s innovative approach to leveraging digital currencies for growth.

In conclusion, Addentax Group Corp.’s proposed Bitcoin acquisition represents a pivotal moment in the company’s history, signaling a strategic shift towards embracing digital assets. While the company faces challenges in its financial performance, this bold move could position it as a frontrunner in the integration of traditional industrial operations with cutting-edge digital asset strategies. As negotiations progress and the deal’s details become clearer, the market will be closely watching how this ambitious venture unfolds.