ZOOZ's Bitcoin Treasury Gamble: Bridging Digital and Traditional Finance Amid Skepticism

ZOOZ Power Ltd. (Nasdaq and TASE: ZOOZ) has become the first dual-listed company on Nasdaq and the Tel Aviv Stock Exchange (TASE) to adopt a Bitcoin treasury reserve strategy, following shareholder approval of a $180 million private placement (PIPE) [1]. The move, which includes a $5 million initial private placement, is expected to close by September 22, 2025, subject to final documentation and regulatory compliance [2]. Proceeds will allocate approximately 95% of net funds—after repaying $3 million in outstanding promissory notes—to Bitcoin purchases, transforming the company’s treasury into a strategic asset [4].

The shareholder vote, held on September 19, 2025, approved key proposals, including the issuance of ordinary shares and warrants, an increase in authorized share capital, and the election of directors Alberto Franco and Jonas Grossman [1]. Nasdaq approval was secured to ensure continued compliance with listing requirements [1]. Jordan Fried, the incoming CEO and a serial technology entrepreneur with experience in blockchain projects like Hedera Hashgraph, emphasized the strategy’s potential to drive growth and differentiate ZOOZ in both traditional and digital markets [4]. “Our treasury is evolving into a strategic asset,” Fried stated, aiming to attract crypto-native and innovation-focused stakeholders [1].

The strategy positions ZOOZ as a dual-listed pioneer in Bitcoin treasury management, offering shareholders direct exposure to the cryptocurrency. This approach mirrors capital allocation strategies of U.S. firms but introduces unique risks, including heightened correlation between ZOOZ’s stock price and Bitcoin’s volatility [2]. Regulatory uncertainties, tax complexities, and macroeconomic pressures are also flagged as potential challenges [3]. The company’s share price surged 13% on September 19 following the approval, though earlier market reactions had been mixed, with a 45% plunge reported after the July announcement of the strategy [5].

ZOOZ’s pivot from energy storage systems—its core business of flywheel-based power boosters for EV charging—to a Bitcoin-focused treasury model has sparked debate. While the company asserts it will not abandon its energy operations, the strategic shift has drawn skepticism from investors expecting conventional growth paths [5]. The PIPE attracted institutional investors, including Pantera Capital, FalconX, and Arrington Capital, reflecting confidence in the digital asset’s long-term value [4].

The initiative aligns with broader trends in corporate adoption of Bitcoin, though ZOOZ’s dual-listed status introduces unique regulatory and operational dynamics. As the first Israeli firm to implement such a strategy, ZOOZ’s success could influence how other companies leverage digital assets in treasury management [6]. The company’s auditors, PwC Israel, and legal advisors, including Cooley LLP and Shibolet & Co., have supported the transaction, underscoring its compliance with existing frameworks [1].

ZOOZ’s strategic repositioning underscores the growing intersection of traditional finance and digital assets. By embedding Bitcoin into its balance sheet, the company aims to capitalize on the cryptocurrency’s historical performance (82% CAGR over the past decade) while navigating risks inherent to its volatility [4]. The outcome of this experiment will be closely watched by investors and regulators, with implications for how dual-listed entities balance innovation and stability in an evolving market landscape.