Jiuzi Holdings (JZXN) Soars 14.29% Intraday, Closes +6.70% on $35.5M Crypto Capital Raise

Jiuzi Holdings Inc. (JZXN) surged 14.29% intraday on October 2, 2025, reaching its highest level since October 2025, with a closing gain of 6.70%. The rally followed the company’s announcement of two capital-raising initiatives totaling $35.5 million, allocated to cryptocurrency investments, signaling a strategic pivot from its traditional smart charging infrastructure business for new energy vehicles in China’s lower-tier cities.

The $30 million private placement, targeting non-U.S. institutional investors, involves units of common stock and warrants exercisable at $0.50, 19% above the issue price. This move aims to bolster liquidity for digital asset acquisitions, a high-risk, high-reward strategy. Meanwhile, a $5.5 million registered direct offering, priced at $0.60 per unit, allocated 70% of proceeds to crypto, further cementing the company’s commitment to the sector. Both offerings carry dilution risks for existing shareholders but reflect a deliberate diversification of Jiuzi’s capital structure.

The strategic shift underscores Jiuzi’s attempt to capitalize on the volatile crypto market, contrasting with its core NEV infrastructure operations, which face challenges like high capital expenditures and competition. While the short-term stock rally suggests investor optimism, long-term success hinges on the performance of its crypto investments. The company’s historical underperformance, including a -68.12% year-to-date return, raises concerns about its ability to balance this new focus with operational sustainability. Regulatory uncertainties and market volatility in digital assets also pose ongoing risks to shareholder value.

By leveraging non-U.S. investors for the private placement, Jiuzi avoids stricter U.S. regulatory scrutiny, enabling faster execution of its strategy. However, the reliance on warrants and share issuances could pressure earnings per share and deter long-term investors. The move positions Jiuzi as a crypto-focused player, appealing to niche investors but potentially alienating those wary of the sector’s inherent risks. As the company navigates this transition, monitoring its quarterly reports and crypto market trends will be critical for assessing the viability of its strategic pivot.