Chijet's Crypto Bet: Reviving Auto Giant Amid Liquidity Crisis?

Nasdaq-listed Chijet Motor Company (NASDAQ: CJET) has completed a $300 million cryptocurrency private placement, marking a significant capital infusion aimed at bolstering its digital asset custody infrastructure and strategic acquisitions in the crypto storage sector. The offering, conducted with select non-U.S. institutional investors, includes units priced at $0.10 per ordinary share in cryptocurrency, alongside three warrants exercisable at $0.12 per share, with a three-year term and cashless exercise options under specified conditions, according to the company's press release.

The transaction, announced on October 27, 2025, follows a challenging period for the company, which has seen its stock decline over 94% in the past six months and faces a current ratio of 0.19, signaling liquidity concerns, according to Investing.com. Proceeds from the placement will be securely custodied under industry-leading standards to ensure compliance with regulatory requirements. CEO Melissa Chen emphasized that the funding reflects investor confidence in Chijet's strategic vision, enabling the company to "advance secure crypto custody infrastructure and pursue strategic acquisitions within the rapidly evolving digital asset storage ecosystem."

The private placement was executed under exemptions from U.S. securities laws, including Section 4(a)(2) and Regulation S of the Securities Act of 1933, the press release states. This move aligns with Chijet's broader financial strategy, which includes recent $20 million and $15 million fundraising efforts through private placements and registered direct offerings, according to Investing.com. However, the company faces regulatory headwinds after receiving a Nasdaq deficiency notice for failing to maintain the minimum bid price of $1.00 per share for 30 consecutive business days. Chijet has until April 13, 2026, to regain compliance, with options such as a reverse stock split under consideration, as detailed in a Seeking Alpha article.

Chijet's core operations remain focused on traditional fuel vehicles and new energy vehicles (NEVs), with manufacturing facilities in Jilin and Yantai, China, the press release notes. The company's pivot into digital asset custody underscores its bid to diversify revenue streams amid volatile automotive sector dynamics. Analysts note that the crypto market's expansion—bolstered by record inflows into Bitcoin and Ethereum ETFs—positions Chijet to capitalize on growing institutional interest in secure storage solutions.