Jiuzi Holdings Allocates $1 Billion to Crypto as Hedge Against Macroeconomic Risks

Jiuzi Holdings, a Chinese public company specializing in electric vehicle (EV) charging infrastructure, has made a strategic move into the cryptocurrency market, announcing a $1 billion investment policy for crypto assets. The board of directors formally approved the initiative, authorizing the allocation of up to $1 billion in cash reserves to purchase Bitcoin (BTC), Ethereum (ETH), and BNB, with future expansions requiring board approval. The policy emphasizes long-term value preservation, framing crypto assets as a hedge against macroeconomic uncertainties^[1]. The company also plans to acquire up to 1,000 BTC within 12 months, financing the purchase through new share issuances, reserves, or third-party capital^[3].

The initiative is led by newly appointed Chief Operating Officer Dr. Doug Buerger, a veteran in blockchain and AI, who emphasized that the strategy is not speculative but focused on "long-term stores of value." The company has established a Crypto Asset Risk Committee under CFO Huijie Gao to oversee governance and report to the board. All material transactions will be disclosed via SEC filings, ensuring transparency^[1].

Jiuzi’s move aligns with a broader trend of corporations adopting crypto reserves, particularly in the U.S. and China. The company’s decision positions it as one of the first Chinese firms listed on NASDAQ to integrate Bitcoin into its balance sheet. Its EV charging business, which operates in lower-tier Chinese cities, provides a traditional revenue stream, while the crypto pivot signals a shift toward digital finance and Web3 alignment^[3].

The policy includes strict risk management measures. Jiuzi will not self-custody its crypto holdings, instead relying on third-party custodians deemed to have "highest-tier" security standards. Initial allocations are capped at BTC, ETH, and BNB, with any expansion requiring reassessment by the Risk Committee. This framework aims to mitigate volatility risks while leveraging the perceived stability of major cryptocurrencies^[1].

Jiuzi’s stock (JZXN) surged over 40% in premarket trading following the announcement, reflecting investor optimism. The company’s treasury strategy contrasts with traditional financial instruments, offering a hedge against inflation and currency devaluation. CEO Tao Li noted the initiative is part of a broader effort to "safeguard and enhance long-term shareholder value," underscoring the board’s forward-thinking approach^[1].

The move has broader implications for corporate crypto adoption in China. While the country historically banned crypto trading and mining, Jiuzi’s policy suggests a potential softening in regulatory stance for institutional-grade investments. Analysts highlight that Jiuzi’s strategy could inspire other Chinese firms to explore crypto reserves, particularly as global competitors like MicroStrategy and Tesla build their own holdings^[3].