Jiuzi Holdings, a company based in Hangzhou that operates new energy vehicle charging stations, recently announced a significant step into the cryptocurrency realm. The company’s board has approved a new crypto treasury policy that permits up to $1 billion in digital asset acquisitions.
The initial focus of this strategy will include major cryptocurrencies such as Bitcoin, Ethereum, and BNB. Any future venture into alternative digital tokens will necessitate further evaluation and explicit approval from the board.
A key aspect of this approach is that Jiuzi will not manage its cryptocurrency holdings in-house. Instead, the company plans to collaborate with external providers, selected for their high-security standards. Oversight of these operations will be conducted by a newly established Crypto Asset Risk Committee, which will be led by Chief Financial Officer Huijie Gao. The committee will have routine reporting responsibilities to the board and will ensure transparency through disclosures via Securities and Exchange Commission Form 6-K filings.
This strategic initiative coincides with the appointment of Dr. Doug Buerger as the Chief Operating Officer. Buerger, who brings significant experience in blockchain and artificial intelligence to the role, emphasized that Jiuzi perceives cryptocurrency not merely as speculative investments but as long-term hedges against macroeconomic fluctuations. CEO Tao Li further elaborated on the goal of this policy, stating that it aims to “safeguard and enhance long-term shareholder value.”
Jiuzi, known for its high-power DC fast chargers aimed primarily at new energy vehicles in China’s lower-tier cities, experienced a notable surge in its stock (JZXN), which rose more than 40% in premarket trading following the announcement of the crypto policy.
Research from Blockworks indicates that publicly traded companies globally hold more than $100 billion in digital assets. Leading the way is MicroStrategy, which boasts approximately 639,835 BTC valued at more than $70 billion. Other companies are also increasing their exposure to Ethereum; for instance, BitMine and SharpLink Gaming have amassed over $5 billion in ETH. Meanwhile, firms like Forward Industries and Upexi have recently expanded their portfolios to include Solana.
In comparison, Jiuzi’s newly authorized $1 billion allocation positions it similarly to mid-sized treasury holders, such as Semler Scientific, which reported $565 million in Bitcoin holdings. It stands significantly ahead of smaller players like Bit Digital and DeFi Development.
This announcement marks a pivotal moment for Jiuzi Holdings, signaling its commitment to integrating cryptocurrency into its future financial strategies amidst a rapidly evolving financial landscape.
