Jiuzi Invests $1 Billion in Crypto: A Calculated Response to Economic Instability

Jiuzi Holdings Inc. (NASDAQ: JZXN), a company engaged in the retail and franchising of New Energy Vehicles (NEVs) in China, has unveiled a $1 billion corporate treasury plan centered on cryptocurrency investments, which triggered a 55.5% jump in premarket share prices $1B Crypto Plan Announced as Jiuzi Shares Spike to 55.5% [ 1 ]. This initiative is focused on

(BTC), (ETH), and , and is supported by a comprehensive risk management system to supervise the allocation. The board’s approval of this move marks a strategic shift to broaden the company’s asset base in response to fierce competition within the NEV industry China’s Jiuzi Holdings Approves $1B Crypto Treasury Led by New COO [ 2 ].

The program is spearheaded by Dr. Doug Berger, the newly named Chief Operating Officer and a recognized "crypto expert," and is monitored by a Crypto Asset Risk Committee led by Chief Financial Officer Gao Huijie China’s Jiuzi Holdings Approves $1B Crypto Treasury Led by New COO [ 2 ]. The company made it clear that it will not directly hold the digital assets, instead entrusting them to external custodians with robust security protocols. Any consideration of additional cryptocurrencies will require renewed board approval, highlighting the company’s prudent stance on risk $1B Crypto Plan Announced as Jiuzi Shares Spike to 55.5% [ 1 ].

Jiuzi’s approach is in line with a growing trend among corporations to diversify their treasuries, similar to strategies adopted by companies such as MicroStrategy and Tesla. The leadership team described the move as a long-term safeguard against economic instability, including inflation and currency depreciation, rather than a short-term speculative bet China’s Jiuzi Holdings Approves $1B Crypto Treasury Led by New COO [ 2 ]. CEO Tao Li explained that the policy is designed to "protect and grow shareholder value over time," emphasizing the board’s proactive efforts to navigate changing financial environments China’s Jiuzi Holdings Approves $1B Crypto Treasury Led by New COO [ 2 ].

The announcement led to a swift and notable increase in Jiuzi’s stock price before the market opened. Market observers pointed out that this volatility demonstrates investor interest in companies that blend traditional business models with calculated exposure to cryptocurrencies $1B Crypto Plan Announced as Jiuzi Shares Spike to 55.5% [ 1 ]. Nevertheless, the company’s financial standing remains under scrutiny: with a market cap near $89 million and a beta of 1.63, Jiuzi’s shares are highly reactive to market changes China’s Jiuzi Holdings Approves $1B Crypto Treasury Led by New COO [ 2 ]. The $1 billion investment constitutes a significant share of its treasury, raising concerns about its ability to handle the volatility associated with cryptocurrencies $1B Crypto Plan Announced as Jiuzi Shares Spike to 55.5% [ 1 ].

This move also places Jiuzi among a rising number of publicly traded firms incorporating digital assets into their financial planning. By focusing on Bitcoin, Ethereum, and BNB, the company aims to balance exposure between established digital reserves (BTC) and innovative blockchain platforms (ETH, BNB). This mirrors the broader institutional trend of viewing cryptocurrencies as viable instruments for portfolio diversification Jiuzi Holdings Announces $1B Crypto Treasury Initiative [ 3 ]. The company’s governance model, which includes regular updates to the board and professional oversight of risks, is designed to address concerns about transparency and accountability China’s Jiuzi Holdings Approves $1B Crypto Treasury Led by New COO [ 2 ].

Importantly, this strategy highlights the mounting competitive challenges in the NEV market. As government incentives for domestic manufacturers like BYD and NIO diminish, companies are exploring new ways to drive growth. Jiuzi’s treasury plan leverages the potential of cryptocurrencies as a store of value while keeping its primary focus on NEV franchising $1B Crypto Plan Announced as Jiuzi Shares Spike to 55.5% [ 1 ]. Experts believe this move could set a precedent for treasury management in the sector, especially as regulations and custody solutions continue to develop Jiuzi Holdings Announces $1B Crypto Treasury Initiative [ 3 ].