Shares of a Chinese investment holding company have been volatile since the firm rolled out an $800 million Bitcoin (BTC) and crypto investment plan earlier this week.

On Thursday, the Shenzhen-based Addentax Group Corp. announced plans to issue shares of its common stock to buy 8,000 BTC and acquire undefined amounts of other crypto assets, including President Donald Trump’s official memecoin (TRUMP).

The firm’s shares, listed on the Nasdaq as ATXG, were priced at $0.72 before the announcement but quickly jumped to a high of $1.68 later that day.

The stock then promptly retraced and dipped even lower than its original price and is now trading at $0.61. ATXG is down nearly 9% in the past 24 hours and more than 20% in the past five days.

Addentax specializes in garment manufacturing, logistics services, property management and subleasing.

The firm notes it has been in discussions “with a number of substantial and influential Bitcoin and other mainstream cryptocurrency holders” to facilitate the upcoming acquisitions.

Addentax chief executive Hong Zhida says the investments are part of the firm’s “broader blockchain strategy.”

“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.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Sportswear giant Nike is reportedly facing a lawsuit following the closure of its non-fungible token (NFT) business.

In 2021, Nike purchased RTFKT Studios, a collectibles firm known for creating viral sneaker designs, memes and other fashionable digital collectibles as it ventured into the metaverse, but the company shut down the project in December.

Reuters reports that investors of Nike-themed NFTs and other crypto assets led by Australian resident Jagdeep Cheema filed a suit on Friday, claiming that they suffered significant losses as demand for their digital collectibles dropped following the announcement that RTFKT was winding down its operations.

The investors say that they would not have bought the NFTs had they known that the tokens were unregistered securities. To date, the legal status of NFTs is not yet settled, and several lawsuits involve questions on whether or not these assets should be considered as securities. 

The suit also accuses Nike of orchestrating a “rug pull”, or the sudden abandonment of a project that leaves investors with worthless assets.

The plaintiffs are seeking more than $5 million in damages for the alleged violation of consumer laws in New York, California, Florida and Oregon.

Nike has not yet issued a statement regarding the lawsuit.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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