Audentax’s Bold Bitcoin Bet: Acquiring up to 12,000 BTC to Power Diversification

Main Points:

• Audentax Group, a NASDAQ-listed Chinese apparel and textile firm, has signed a non-binding MoU to acquire up to 12,000 BTC ($1.3 billion) in exchange for new shares.
• This potential acquisition expands on earlier talks to buy 8,000 BTC, signaling growing corporate confidence in Bitcoin’s liquidity and long-term value.
• Settlement hinges on due diligence, final contracts, and board approvals, with exact BTC amount and share count to be agreed.
• Audentax aims to diversify beyond textiles and logistics, leveraging this allocation as part of a long-term Bitcoin investment strategy.
• The move mirrors recent corporate trends: Strategy (formerly MicroStrategy) holds 597,325 BTC, while Marathon Digital has 49,940 BTC, underscoring Bitcoin’s rise as a mainstream corporate treasury asset.
  

1. Background: Audentax Steps into Bitcoin

On July 2, 2025, Audentax Group—a Chinese textile and apparel manufacturer trading on the NASDAQ—announced it has entered into a non-binding Memorandum of Understanding (MoU) with large Bitcoin holders to acquire up to 12,000 BTC, equivalent to approximately $1.3 billion at current market prices (around $107,500 per BTC). The purchase, to be settled through newly issued ordinary shares, represents a significant pivot from its core business of textiles and logistics into digital assets, signaling an ambitious diversification strategy.

2. Details of the Agreement

• Scope of Acquisition: Initially in discussions for 8,000 BTC, the MoU now contemplates purchasing up to 12,000 BTC, reflecting increased ambition and market engagement.
• Valuation & Settlement: Based on today’s spot price ($107,500), the maximum purchase is valued at $1.29 billion (¥200 billion). Settlement will occur via issuing new ordinary shares to the Bitcoin sellers.
• Conditions: Final acquisition will require:
  1. Completion of due diligence by both parties.
  2. Negotiation and execution of definitive purchase agreements.
  3. Approval from relevant corporate and regulatory bodies in China and the U.S.
• Timing: Once conditions are met, the transaction is expected to close in late 2025 or early 2026, depending on regulatory and corporate governance timelines.

3. Strategic Rationale

Audentax’s management highlighted several strategic drivers behind this move:

1. Long-Term Store of Value: Bitcoin’s finite 21 million supply offers potential inflation protection, attractive amid global monetary expansion.
2. Market Liquidity: As the most liquid cryptocurrency, Bitcoin can be acquired and liquidated with minimal market impact at scale.
3. Corporate Diversification: Transitioning a portion of its balance sheet into digital assets allows Audentax to hedge against cyclical headwinds in the apparel sector.
4. Brand Positioning: By embracing cutting-edge technologies, the company aims to attract investors seeking exposure to both the Chinese market and blockchain innovations.
   

4. Market Context: Corporate Bitcoin Adoption

In recent years, a growing number of public companies have amassed Bitcoin as a treasury asset:

• Strategy (formerly MicroStrategy): Holds 597,325 BTC, valued at over $64 billion, making it the largest corporate Bitcoin holder.
• Marathon Digital: Owns 49,940 BTC, produced via in-house mining, showcasing miners’ shift from operational to Treasury strategies.
• GameStop & Trump Media: Other companies like GameStop ($500 million purchase) and Trump Media (raising $2.5 billion for BTC reserves) illustrate a broader trend of non-financial firms seeking Bitcoin exposure.

5. Comparative Corporate Bitcoin Holdings

Below is a visual comparison of the potential Audentax purchase alongside two major Bitcoin-holding corporates:
Figure: Audentax aims to hold 12,000 BTC versus Strategy’s 597,325 BTC and Marathon Digital’s 49,940 BTC.

6. Implications for Practitioners and Investors

6.1 New Crypto Asset Opportunities

• Token Issuance & DeFi: Audentax’s move could spur tokenization of supply-chain financing, letting investors gain exposure to textile-backed assets on blockchain.
• Revenue Streams: By integrating Bitcoin payments or NFT-based product lines, apparel firms could unlock new digital-native revenue channels.

6.2 Risk Considerations

• Volatility: Bitcoin’s price can swing ±20% in short periods, posing mark-to-market risks.
• Regulatory: Cross-border asset transfers via share issuance will require careful compliance with SEC and China’s foreign exchange rules.
• Liquidity Management: Large OTC purchases must be structured to minimize price impact and ensure settlement security.

6.3 Blockchain in Operations

• Supply-Chain Transparency: Leveraging permissioned blockchains for traceability could align with digital asset initiatives, creating an integrated, blockchain-powered ecosystem from procurement to treasury management.
• Smart Contracts for Trade Finance: Smart-contract platforms could automate settlement of Bitcoin purchases, reducing counterparty risk and operational overhead.

7. Conclusion

Audentax’s MoU to acquire up to 12,000 BTC marks a bold step in corporate treasury management, reflecting confidence in Bitcoin’s role as a liquid, inflation-resistant store of value. By diversifying beyond textiles into digital assets, the Shenzhen-based firm joins a vanguard of companies—led by Strategy and Marathon Digital—turning to blockchain not just as a technology but as a core financial strategy. For practitioners and investors focused on new crypto assets, revenue models, and practical blockchain applications, this development underscores the accelerating convergence of traditional industries with decentralized finance.