Almost two months after transitioning from the energy sector to cryptocurrency, Zooz Power has made headlines with its acquisition of 525 Bitcoins for $60 million. This ambitious purchase was facilitated by raising $180 million through a recent share issuance, priced at $1 per share, resulting in net proceeds of approximately $159 million for the company. Notably, around 95% of these funds are earmarked for Bitcoin purchases.
The purchase deal’s main features consist of the aforementioned $159 million in net cash, along with an additional $5 million stemming from a private offering expected in July 2025. Additionally, the company retains an option to reinvest up to $3 million more. Given the current price of Bitcoin, around $113,000 per coin, this development leaves Zooz Power with nearly $100 million still available for future Bitcoin acquisitions.
However, the company’s shift in strategy hasn’t come without its challenges. Following the share allotment, Zooz Power’s stock tumbled significantly, leading to a market capitalization of less than NIS 90 million, equating to roughly $27 million.
Zooz Power’s recent pivot mirrors a strategy adopted by MicroStrategy, a company valued at $93.5 billion on Wall Street. MicroStrategy has embraced Bitcoin as its primary treasury asset, frequently financing acquisitions of Bitcoin through various equity issuances. Presently, the firm holds around 640,000 Bitcoins valued at approximately $47 billion. This business model positions the purchase of MicroStrategy stocks as akin to betting on Bitcoin’s price movements, a strategy that Zooz now aims to replicate in the Israeli market.
Prior to this cryptocurrency foray, Zooz Power was involved in the development and sale of kinetic energy storage systems, but failed to achieve notable success in that arena. The company closed 2024 with losses amounting to NIS 40 million and reported a loss of NIS 43 million in 2023, alongside minimal revenue streams. The pivot to cryptocurrency occurred in August, marked by a leadership change in which CEO Erez Zimerman was replaced by entrepreneur and digital currency expert Jordan Fried. This new direction represents a significant shift for the company as it seeks to navigate the dynamic world of cryptocurrencies.
