Chinese Firm's $800M Crypto Buy: Bitcoin & TRUMP
Addentax Group, a major Chinese international logistics firm, is reportedly negotiating an $800 million purchase of crypto assets, including Bitcoin (BTC) and the TRUMP meme coin. This significant investment raises questions about its potential impact on US-China trade relations, echoing a similar strategy employed by another logistics company.
TRUMP Meme Coin Controversy
Since China's 2021 crypto mining ban, the country's involvement in the crypto market has been relatively limited. However, recent actions suggest a potential easing of restrictions. Addentax's proposed investment represents a considerable commitment to the cryptocurrency space by a large Chinese conglomerate.
While Addentax primarily aims to acquire Bitcoin—reportedly negotiating with holders of approximately 8,000 BTC—its inclusion of the TRUMP meme coin in its announcement has drawn significant attention. The company's press release didn't specify the allocation between BTC and TRUMP, or any other assets.
The announcement caused a minor price increase for TRUMP, recovering to $13 after a dip, but negatively impacted Addentax Group's stock price (ATXG), which fell over 8%. This suggests institutional investors' apprehension regarding the company's foray into crypto.
US-China Trade Implications?
Speculation abounds regarding a potential connection between this purchase and US-China trade relations. Addentax's logistics business, specializing in cross-border textile shipments, could significantly benefit from reducing or circumventing tariffs imposed by the US. A similar strategy was reportedly used by another logistics firm, which purchased $20 million worth of TRUMP tokens.
Addentax CEO Hong Zhida stated, "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."
However, the singular mention of TRUMP alongside Bitcoin raises eyebrows. If liquidity and institutional interest were paramount, other altcoins could have been included. The potential link between this investment and US trade policy remains a subject of ongoing discussion.
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