Addentax Group Plans $1.3 Billion Bitcoin Acquisition Without Spending Cash

In a bold pivot toward crypto asset accumulation, Shenzhen-based Addentax Group Corp has unveiled its intent to acquire up to 12,000 Bitcoins, valued at approximately $1.3 billion. The plan, outlined in a letter of intent filed with Nasdaq on July 2, 2025, involves funding the entire purchase not with cash, but through newly issued shares—an ambitious strategy signaling the firm’s commitment to building long-term digital reserves.

A Radical Financing Model: Bitcoin for Shares

Unlike traditional corporate treasury strategies, Addentax’s plan eliminates the need for direct capital outflows. Instead, the company intends to use a share issuance mechanism to finance its Bitcoin purchase. The deal, still pending due diligence and legal approvals, will finalize critical terms such as BTC quantity, share volume, and pricing through ongoing negotiations with the counterparties.

This mechanism not only conserves liquidity but also leverages shareholder equity to acquire a globally scarce asset. If successful, this transaction would place Addentax among a select class of public companies holding significant Bitcoin reserves, such as MicroStrategy and Tesla.

Why Bitcoin, Why Now?

Addentax’s executive team views Bitcoin as a long-term hedge and a modern store of value—highlighting the asset’s global liquidity and its rising institutional legitimacy. By avoiding cash expenditures and embracing equity-financed crypto exposure, the company diversifies its balance sheet while navigating regulatory complexities.

The firm previously floated a smaller plan in mid-May 2025 to acquire 8,000 BTC. In just weeks, it has expanded its crypto ambitions by 50%, reflecting growing confidence in digital assets amid macroeconomic uncertainty and monetary policy shifts worldwide.

Strategic Timing and Market Risks

Despite the innovation behind the financing model, the deal carries inherent volatility. Bitcoin’s price fluctuations will directly affect the number of shares required to complete the acquisition. Market conditions, regulatory reviews, shareholder approvals, and an independent valuation process all stand between intent and execution.

Notably, 12,000 BTC represents approximately 0.08% of the total circulating Bitcoin supply—a substantial amount that could reignite discussions around corporate demand and crypto scarcity.

Institutional Entry Accelerates

If finalized, Addentax would become one of the few China-origin public companies with a massive Bitcoin reserve on its balance sheet. This move aligns with a broader institutional wave viewing digital assets not merely as speculative instruments, but as strategic holdings in corporate finance.

By leveraging equity instead of cash, Addentax sends a powerful message: the crypto era isn’t just about decentralization—it’s about financial innovation.

• https://twitter.com/Thebitjournal_
• https://www.linkedin.com/company/the-bit-journal/
• https://t.me/thebitjournal

Follow us on Twitter and LinkedIn and join our Telegram channel to get instant updates on breaking news!

References:

• SEC Filings Database – www.sec.gov
• Nasdaq Corporate Disclosures – www.nasdaq.com
• CoinDesk – “Institutional Bitcoin Demand Surging in 2025”
• Reuters – “Crypto Market Update: July 2025”