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Jiuzi Holdings Commits $1 Billion to Cryptocurrency to Mitigate Macroeconomic Uncertainties

Jiuzi Holdings Commits $1 Billion to Cryptocurrency to Mitigate Macroeconomic Uncertainties

Bitget-RWA2025/09/24 16:13
By:Coin World

- Jiuzi Holdings allocates $1B to BTC, ETH, and BNB as a macroeconomic hedge. - The firm plans to buy 1,000 BTC via new shares or third-party funding. - A Crypto Risk Committee oversees governance, using third-party custodians for security. - The move boosts JZXN stock by 40% and may influence China's corporate crypto adoption. - This strategy aligns with global trends, emphasizing long-term value preservation.

Jiuzi Holdings Commits $1 Billion to Cryptocurrency to Mitigate Macroeconomic Uncertainties image 0

Jiuzi Holdings, a publicly traded Chinese company focused on electric vehicle (EV) charging networks, has entered the cryptocurrency sector by unveiling a $1 billion investment plan for digital assets. The board has officially sanctioned this move, permitting up to $1 billion from its cash reserves to be used for acquiring

(BTC), (ETH), and , with any future asset additions needing board consent. The strategy is designed to protect long-term value, viewing cryptocurrencies as a safeguard against broad economic instability [ 1 ]. The company also intends to purchase up to 1,000 over the next year, with funding sourced from new equity, internal funds, or external investors [ 3 ].

This initiative is spearheaded by Dr. Doug Buerger, the newly named Chief Operating Officer with extensive experience in blockchain and AI, who stressed that the approach is aimed at "long-term value preservation" rather than speculation. To oversee this policy, a Crypto Asset Risk Committee led by CFO Huijie Gao has been formed, reporting directly to the board. All significant transactions will be made public through SEC disclosures to maintain transparency [ 1 ].

Jiuzi’s strategy reflects a growing trend among corporations, especially in the U.S. and China, to hold crypto reserves. This decision makes Jiuzi one of the first Chinese NASDAQ-listed companies to add Bitcoin to its financial statements. While its EV charging operations in smaller Chinese cities continue to generate traditional income, the shift to crypto signals a move toward digital finance and Web3 innovation [ 3 ].

The policy outlines comprehensive risk controls.

will not manage its crypto assets directly, instead entrusting them to external custodians with top-tier security protocols. Initial investments are restricted to BTC, ETH, and BNB, and any diversification will be subject to review by the Risk Committee. This structure is intended to reduce exposure to volatility while capitalizing on the relative stability of leading cryptocurrencies [ 1 ].

Following the announcement, Jiuzi’s shares (JZXN) jumped more than 40% in premarket trading, signaling strong investor confidence. The company’s treasury approach differs from conventional financial products, providing a buffer against inflation and currency risk. CEO Tao Li described the policy as part of a larger plan to "protect and grow long-term shareholder value," highlighting the board’s progressive outlook [ 1 ].

This development could have significant effects on how Chinese companies approach crypto. Despite China’s previous bans on crypto trading and mining, Jiuzi’s policy may indicate a shift in regulatory attitudes toward institutional investments. Experts suggest that Jiuzi’s example might encourage other Chinese businesses to consider crypto holdings, especially as international firms like MicroStrategy and Tesla expand their own reserves [ 3 ].

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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