Addentax Group Corp. is making headlines with its plan to acquire 12,000 Bitcoins through a new share issuance, representing a $1.30 billion deal that underscores the growing integration of digital currencies into corporate strategies.

This ambitious acquisition marks a significant increase from an earlier plan to purchase 8,000 BTC, reflecting CEO Hong Zhida's vision of merging blockchain technology with corporate finance.

By adding Bitcoin to its balance sheet, Addentax aims to hedge against inflation and position itself as an innovative player in the digital asset market.

Despite the potential benefits, this investment carries risks due to Bitcoin's volatility and regulatory uncertainties, yet it demonstrates Addentax's confidence in the long-term prospects of cryptocurrency.

Market participants are expressing skepticism about the feasibility of such a large non-cash transaction without institutional financing, particularly concerning the potential dilution of existing shares.

The acquisition will be financed through the sale of shares traded on Nasdaq, although details regarding share pricing and the exact number of Bitcoins remain uncertain as the agreement is non-binding.

Addentax's market value is currently below $7 million, and its shares have been trading below $1 for over a year, raising concerns about the feasibility of such a large investment in Bitcoin.

The market response to this news has been mixed, with investors weighing the risks and rewards of such a significant investment in a volatile asset like Bitcoin.

This share issuance is expected to dilute the ownership percentage of existing shareholders, but the long-term value of Bitcoin could offset this short-term impact.

Addentax faces regulatory challenges in integrating Bitcoin into its treasury, which could influence public perception and investor trust.

Analysts anticipate that Addentax's acquisition will enhance market liquidity and stabilize Bitcoin's price, further legitimizing its role in corporate finance.

Previous acquisition talks worth around $800 million with crypto representatives did not result in a binding agreement, leaving investors wary of Addentax's speculative intentions.