ATXG Stock Soars 150% Then Crashes on $800M Crypto Bid—What’s Next for Investors?

Addentax Group Corp. (NASDAQ: ATXG) saw its stock price go haywire on May 15. It surged to an intraday high of almost $1.78—more than 150% up—before plummeting to close near $0.65. That volatile move followed the company’s announcement of an $800 million plan to buy up to 8,000 Bitcoins and TRUMP tokens using new shares rather than cash.

That price spike didn’t last long. Sellers rushed in after the rally, sending the stock below its 50-hour moving average of $0.74. Support is now around $0.56 and $0.38. The collapse from those highs reflects the uncertainty investors are feeling about the speculative nature of that crypto-for-equity swap.

A Stock-for-Crypto Swap Raises Eyebrows

ATXG wants to issue new shares in exchange for the digital assets—Bitcoin and those meme-based tokens—currently held by big crypto investors. The deal is still being negotiated, but Addentax says this pivot will bring blockchain-savvy stakeholders into its ecosystem. “No binding agreements have been finalized,” the company emphasized.

CEO Hong Zhida described the move as a “foundational shift” towards long-term digital asset integration. But with the stock giving back all its gains within hours, investors are questioning the plan’s credibility and execution.

Regulatory and Market Risks Remain Lurking

The announcement comes as U.S. lawmakers are scrutinizing crypto tokens with ties to politics. Recent actions highlight concerns over transparency in deals involving TRUMP and MOVE tokens. ATXG says it remains committed to compliance. But the market’s reaction suggests skepticism.

Unless the company offers more clarity, ATXG stock could stay under pressure. That dramatic rally and crash is already serving as a cautionary tale about crypto hype meeting market reality.