A Addentax Group Corp (NASDAQ: ATXG), a Chinese company with shares in the US stock market, is suffering an unexpected setback this Friday (16th), a day after announcing its Bitcoin Reserve and TrumpCoin plans.
Accumulating a 99% devaluation in its stock since 2022, investors are now noticing a further drop of 12.61% in the last 24 hours, with each share worth just US$ 0.59.
A day earlier, in a statement from China, Addentax stated that it plans to invest up to 800 million dollars in cryptocurrencies.
Diversification of Bitcoin Reserve and altcoins did not help company overcome market difficulties
Many serious companies that study market fundamentals understand that the Strategic Bitcoin Reserve is one of the best. Strategy (formerly MicroStrategy), is a more successful case with a recurring bitcoin buying campaign.
The strategy has even influenced the company Méliuz in Brazil, which since last Thursday (15th), has officially become an exclusive Bitcoin adopter.
Addentax decided to announce in its US$ 800 million investment plans that it plans to buy up to 8,000 units of bitcoin. However, it also plans to invest in altcoins and even memecoins, such as TrumpCoin, a cryptocurrency launched by Donald Trump.
The announcement became official after publication on the official SEC website, where the company detailed the proposal to the market.
Hong Zhida, CEO of the company, commented that the initiative puts the company in the crypto market for good. “This initiative supports the Company’s broader blockchain strategy, facilitating potential acquisitions of digital assets such as Bitcoin and introducing strategic investors with experience in the cryptocurrency ecosystem. We believe that certain established digital assets can serve as a stable component of the Company’s long-term investments, given their liquidity and growing institutional interest in recent years,” said the executive.
Who doesn’t adopt only bitcoin runs more risks?
The fall in the shares of the Chinese clothing company after announcing diversification with bitcoin and other altcoins may serve as an example in the future for other interested parties. This is because alternative cryptocurrencies do not have solid fundamentals like bitcoin, much less market time.
In other words, announcing the purchase of a memecoin like Trumpcoin may have led investors to doubt the seriousness of the proposal presented.
On the other hand, companies that exclusively adopt bitcoin benefit from large increases in the market, as is the case with Méliuz (B3: CASH3) in Brazil, which has already seen its shares skyrocket 287% since the beginning of 2025.
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