Addentax Group Corp. announced Wednesday it has entered into a non-binding term sheet to acquire up to 12,000 Bitcoins from an independent holder. This move could see the company issue new shares in exchange for the digital assets.
The proposed acquisition, if finalized, would significantly expand the company’s cryptocurrency holdings. The current market value of the 12,000 Bitcoins is estimated at approximately $1.3 billion. The company intends to settle the transaction through the issuance of newly issued common stock, though specific terms are yet to be determined.
The agreement marks an increase from a previously disclosed plan to purchase 8,000 Bitcoins, as announced in a May 15 press release. Addentax has since concluded discussions with a single, substantial Bitcoin holder willing to sell a larger quantity.
Deal Terms Subject to Final Agreement
While the term sheet outlines a preliminary understanding, the transaction remains subject to the negotiation and execution of a definitive agreement. Final terms, including the number of Bitcoins to be acquired, the volume of shares to be issued, and pricing, will be mutually agreed upon between the parties.
The completion of due diligence and the receipt of necessary approvals are also required before any transaction is finalized. The company did not name the Bitcoin holder involved in the potential deal but characterized them as “substantial” and “independent.” Addentax emphasized that the term sheet is non-binding, indicating no assurance that the transaction will ultimately be completed.
Part of Broader Digital Asset Strategy
This development follows Addentax’s earlier announcement that it was in discussions with multiple Bitcoin holders. Tuesday’s statement confirms the company has moved forward with one of those parties, reflecting its broader strategy to increase exposure to digital assets.
Company executives said they are committed to allocating resources toward a long-term Bitcoin investment approach, citing the cryptocurrency’s global recognition and market momentum. No further timeline was provided regarding when a definitive agreement might be reached.
Addentax, based in Shenzhen, operates across various sectors including logistics and textile manufacturing, but has recently signalled an interest in diversifying through digital assets. The company’s latest move aligns it with other publicly listed firms that have made similar Bitcoin-related investments amid a broader surge in institutional interest in the cryptocurrency sector.
