Jiuzi Holdings Approves $1 Billion Crypto Investment Plan
- Chinese EV firm Jiuzi Holdings invests $1 billion in crypto.
- Focus on Bitcoin BTC -0.97% and Ethereum ETH -0.52% investments.
- Shares surged 55% premarket after the announcement.
Jiuzi Holdings, a Chinese EV charging firm, has approved a $1 billion crypto investment policy focused on Bitcoin, Ethereum, and Binance Coin.
The investment signals significant institutional interest in crypto, potentially influencing market dynamics, as evidenced by Jiuzi’s shares rising 55% premarket following the announcement.
Jiuzi Holdings, a Chinese EV infrastructure company, has approved up to $1 billion investment in cryptocurrencies. This major decision follows strategic leadership appointments and reflects a shift towards digital assets amidst macroeconomic uncertainties.
The company will focus on Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). New Chief Operating Officer Dr. Doug Buerger and CFO Huijie Gao are key figures overseeing these investments through a special Risk Committee.
Market Reaction
The announcement resulted in a more than 55% surge in Jiuzi Holdings’ shares during premarket trading. Investor enthusiasm suggests growing confidence in the company’s forward-looking financial strategies.
By prioritizing cryptocurrencies like BTC, ETH, and BNB, Jiuzi Holdings aligns itself with a long-term treasury strategy. This approach prioritizes value preservation over short-term speculative gains.
Corporate Strategy & Industry Implications
The policy echoes moves by other corporations involving significant crypto allocations. Such decisions typically boost market momentum and asset prices, signaling institutional trust in these digital currencies.
Dr. Doug Buerger, COO, Jiuzi Holdings, “I am thrilled to lead this important treasury initiative supported by such a forward-thinking Board and management team. We are not engaging in short-term trading or speculation; rather, we view crypto assets as long-term stores of value to hedge against macroeconomic uncertainties.”
Potential regulatory responses could shape future strategies. However, current market trends affirm digital assets as viable treasury tools, paralleling strategies by companies like MicroStrategy.
