Juizi Holdings' $1B Bitcoin Treasury Plan Sparks 25% Stock Surge

Chinese EV firm Juizi Holdings has authorized up to $1B in company funds for a cryptocurrency treasury, focusing on Bitcoin, Ethereum, and BNB. The company will not self-custody its assets and has appointed a Crypto Asset Risk Committee. Juizi's stock surged over 25% after the announcement. This move joins a growing list of corporate treasuries adopting cryptocurrency reserve strategies.

Chinese electric vehicle (EV) company Juizi Holdings, Inc. (NASDAQ: JZXN) has authorized up to $1 billion of its funds to be allocated towards a cryptocurrency treasury, focusing on Bitcoin, Ethereum, and BNB. The announcement, made on September 24, has led to a significant increase in the company's stock price, with shares surging over 25% Juizi Holdings Stock Surges Over 25% After Announcing $1B Bitcoin Treasury Plan^[1].

The company, which specializes in providing intelligent charging infrastructure for new energy vehicles in China’s Tier 3-4 cities, has appointed a Crypto Asset Risk Committee under the leadership of CFO Huijie Gao to oversee the implementation of this policy. The committee will not self-custody the acquired assets but will instead manage them through third-party custodial services Juizi Holdings Stock Surges Over 25% After Announcing $1B Bitcoin Treasury Plan^[1].

The initial investments will be limited to Bitcoin, Ethereum, and BNB, with the company stating it will not participate in short-term trading or speculation. Instead, the cryptocurrencies will be viewed as long-term stores of value to hedge against macroeconomic uncertainties Juizi Holdings Stock Surges Over 25% After Announcing $1B Bitcoin Treasury Plan^[1].

Juizi Holdings joins a growing list of companies adopting cryptocurrency reserve strategies. According to Coinspeaker, Financial Services Strive Inc. recently acquired Semler Scientific Medical Company, using cryptocurrencies to grab a significant portion of the world's most general Bitcoin BNB Chain Bull Market Fueled by Ultra-Low Fees and On-Chain Activity^[2]. Additionally, the Kyrgyz government is in the process of creating regulations for digital assets, and Philippine lawmakers have presented new legislation to create a national Bitcoin reserve BNB Chain Bull Market Fueled by Ultra-Low Fees and On-Chain Activity^[2].

The announcement comes as more companies explore cryptocurrency investments as part of their treasury management strategies. Juizi Holdings, with a market capitalization of $89 million, is notable for its significant planned allocation relative to typical corporate treasury investments in digital assets Jiuzi Holdings approves $1 billion crypto investment policy^[3].

Juizi Holdings' stock price has shown significant volatility, with a beta of 1.63, indicating higher risk compared to the market. However, the company maintains strong liquidity, with a current ratio of 4.19 and a healthy balance sheet with more cash than debt Jiuzi Holdings approves $1 billion crypto investment policy^[3].

The appointment of Dr. Doug Buerger as the company's Chief Operating Officer further underscores Juizi Holdings' commitment to incorporating digital currencies into its financial operations. Dr. Buerger, a veteran in blockchain, artificial intelligence, and digital currency ecosystems, will lead the company's digital currency treasury strategy Jiuzi Holdings approves $1 billion crypto investment policy^[3].

Juizi Holdings' move reflects a broader trend of companies adopting cryptocurrency reserve strategies as a means of diversifying their treasuries and hedging against economic uncertainties. As the market continues to evolve, it will be crucial for investors to monitor these developments closely.