- China’s stringent crypto ban contrasts with Jiuzi Holdings’ new billion-dollar digital asset treasury allocation.
- Jiuzi’s stock surged over 50% after announcing its Bitcoin, Ethereum, and Binance Coin reserve strategy.
Jiuzi Holdings, a company based in Hangzhou that operates in the electric vehicle sector, announced a plan to establish a one-billion-dollar reserve of crypto currencies. The company will begin by acquiring Bitcoin, Ethereum, and Binance Coin. Its board of directors has approved a formal policy to guide these investments. The stated objective is to strengthen the corporate balance sheet and increase value for shareholders over time.
Tao Li, the Chief Executive Officer of Jiuzi, described the strategy as a proactive measure for treasury management. The company has appointed Dr. Doug Buerger, an individual with experience in digital assets, to the position of Chief Operating Officer.
A dedicated internal group, the Crypto Asset Risk Committee, will manage the reserve under the direction of the chief financial officer, Huijie Gao. Jiuzi stated that the digital currencies will be stored with established custody services and not actively traded for profit. The assets will be reported as holdings in its filings with the Securities and Exchange Commission.
Financial markets reacted to the announcement. The company’s stock, which is listed in the United States, increased by 55% in pre-market trading. That gain was later reduced to approximately 32%Â after the official market opening.
This action aligns Jiuzi with a small number of international corporations that are incorporating digital assets into their financial strategies. For instance, the Japanese firm Metaplanet recently purchased over $600 million worth of Bitcoin. In the United States, companies including CEA Industries and BitMine Immersion Technologies have also moved into cryptocurrencies like Ethereum.
