Addentax Group, a Chinese international logistics firm, is negotiating the purchase of $800 million in cryptoassets such as Bitcoin and TRUMP. This may or may not be a play to negotiate tariffs, as another firm in this business did.
The company’s press release did not mention any altcoins besides TRUMP. Whether Addentax finalizes this deal or not, it’s unclear what percentage of the $800 million will go to BTC or any other token.
More Controversy Around the TRUMP Meme Coin
Since China banned crypto mining in 2021, the industry has maintained a comparatively small presence in this economic powerhouse. Still, the nation has shown a few signs of loosening its restrictions.
Addentax, one major Chinese conglomerate, is considering a massive investment in this space by purchasing tokens, including Trump’s meme coin.
To be clear, Addentax is mostly aiming to buy Bitcoin. According to its press release, it’s in negotiations with unnamed token holders who hold around 8,000 BTC. This alone would represent an investment of $800 million, but Addentax is looking to diversify its potential holdings.
However, the Chinese firm only listed TRUMP as an altcoin that it could purchase alongside BTC. Now, the announcement did have some insignificant impact on the meme coin’s price. TRUMP recovered to $13 after falling below $12.50 earlier today.
Yet, it had a completely adverse impact on Addentax Group’s stock price. ATXG fell by over 8% since the announcement. Institutional investors seem not fond of the company’s decision to gain exposure to crypto.
Meanwhile, there are speculations that this purchase could be linked to the US-China trade deal. Addentax is in the logistics business, facilitating cross-border textile shipments worldwide. Naturally, Trump’s tariffs would significantly disrupt this business.
Two weeks ago, one cross-border logistics firm already bought $20 million on TRUMP in an apparent bid to win a cutout. The President’s meme coin is already at the center of political corruption controversies, but that company might’ve made a smart bet.
If a Chinese firm buys TRUMP, could that facilitate its own ability to overcome the tariffs?
Addentax’s statement did not directly touch on these concerns in any way. It primarily mentioned Bitcoin and building institutional connections with “influential crypto holders.” Hong Zhida, the company’s CEO, described Addentax’s views on crypto in detail:
“This initiative supports the Company’s broader blockchain strategy by… introducing strategic investors with experience in the crypto ecosystem. We believe 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,” he claimed.
Still, it’s impossible to miss that a Chinese firm mentioned TRUMP and zero other altcoins whatsoever. If liquidity and institutional interest were the highest priorities, Addentax could’ve made the case for many other potential candidates.
By investing millions in TRUMP, the firm could guarantee a way to keep its core business running smoothly while entering Web3. However, these assumptions remain part of the broader speculations surrounding one of the most controversial meme coins in the market’s history.
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