Jiuzi's $40M Crypto Deal: A Flow Analysis

The core transaction is a ~$40 million commitment of Crypto assets from strategic institutions. The deal sets a floor price of $1.50 per share, a figure that will be the basis for the asset exchange.

This is not a distant promise. The company stated the cooperation is expected to deliver strategic value, implying the capital infusion is imminent. The timeline is tight, with the deal to be completed within two weeks of the announcement.

The immediate market signal is stark. That $1.50 price represents a 249% premium over the stock's recent closing price of $0.43. This isn't just a funding round; it's a forced re-rating event for a micro-cap stock trading near its 52-week low.

The Flow: Capital In and Strategic Intent

The inflow is not in cash, but in Crypto assets valued at approximately US$40 million. This introduces a unique custody and valuation layer, as the company must integrate these digital assets into its treasury system. The flow mechanics are clear: a large, illiquid asset class is being exchanged for equity at a fixed price, creating an immediate, artificial floor for the stock.

The investors are not passive capital providers. They are described as leading institutions specializing in blockchain infrastructure and Crypto asset management. This signals a partnership focused on technical collaboration, ecosystem access, and market expansion, not just a capital injection. Their involvement is designed to accelerate Jiuzi's Digital Asset Treasury (DAT) strategy and provide expertise in multi-chain operations and DeFi applications.

This deal follows a separate $30 million private placement commitment from Xinhui Solar. Together, these two strategic moves represent a broader funding push, with the Crypto deal targeting digital assets and the Solar deal supporting Southeast Asia new energy initiatives. The company is using multiple capital channels to advance distinct strategic fronts simultaneously.

The Catalyst: Market Reaction and What to Watch

The market is pricing in deep skepticism. Jiuzi's stock is down 60.27% since the market last closed, trading at $0.43 and near the bottom of its 52-week range. This collapse suggests investors are questioning the company's core new energy vehicle (NEV) franchise model, viewing the $40 million Crypto deal as a desperate capital move rather than a credible turnaround.

The primary catalyst is now a binary event: the successful completion of the $40 million Crypto asset transfer within two weeks. The market's reaction to this physical capital infusion will be the first real test. The deal's stated floor price of $1.50 per share creates a clear, artificial support level that the stock must now attempt to climb from.

Key watchpoints are straightforward. First, monitor the actual closing price per share following the transfer to see if it settles near the $1.50 floor or reverts lower. Second, scrutinize the composition of the Crypto assets received-their liquidity and volatility will directly impact the new treasury's resilience. Finally, watch for any updates on the Digital Asset Treasury (DAT) strategy execution, as this is the deal's promised payoff and the only path to justifying the premium.