Chinese Clothing Company’s Crypto Gamble Causes Stock Rollercoaster

A Chinese company’s big bet on Bitcoin and other cryptocurrencies has sent its stock price on a wild ride.

$800 Million Crypto Investment

Addentax Group Corp. (ATXG), a Shenzhen-based firm involved in clothing, logistics, and property, announced a plan to spend $800 million on crypto. This includes buying 8,000 Bitcoin and an unspecified amount of other digital assets, even including the TRUMP memecoin.

Stock Price Swings Wildly

The announcement initially boosted ATXG’s stock price. It jumped from $0.72 to $1.68 on the Nasdaq. However, this was short-lived. The price quickly fell back below its original level, currently trading around $0.61. That’s a drop of almost 9% in the last 24 hours and over 20% in the last five days.

Company’s Reasoning

Addentax CEO Hong Zhida explained the investment as part of a broader blockchain strategy. He believes that established cryptocurrencies, due to their liquidity and growing institutional interest, could be a stable long-term asset for the company. The company is reportedly working with significant cryptocurrency holders to make these purchases.

Disclaimer

This information is for general knowledge and shouldn’t be considered investment advice. Investing in cryptocurrencies is risky, and you could lose money. Always do your own research before making any investment decisions.