ZOOZ Power Plunges 44.59%: Will the Bitcoin Treasury Strategy Sink or Save This Nasdaq Dual-Listed Play?

Summary
• ZOOZ Power (ZOOZ) crashes 44.59% to $1.945, its lowest since 2022
• $180M private placement approved to build Bitcoin treasury, led by Pantera and FalconX
• Jordan Fried named CEO to execute "first Israeli digital asset treasury strategy"

ZOOZ Power, the Israeli EV charging pioneer turning into a Bitcoin dual-listed treasury play, has imploded after shareholders approved a $180M private placement. The stock opened at $2.38 and collapsed to $1.75, a 44.59% drop in under 4 hours. This unprecedented move follows a strategic pivot to Bitcoin holdings, led by serial crypto founder Jordan Fried. The 52-week low of $0.725 now looms as a critical support level.

Dilution Shockwave: $180M PIPE Ignites Shareholder Panic
ZOOZ's catastrophic price action stems from the $180M private placement (PIPE) at $1/share, a 66% discount to its 52-week low of $0.725. The deal, involving 180 million new shares and warrants, dilutes existing shareholders by 176.69% (turnover rate). This represents the largest Bitcoin treasury fundraise by a non-US listed company, but the 66%+ discount triggered immediate panic selling. The stock's 44.59% drop reflects market skepticism about the viability of a dual-listed Bitcoin treasury strategy and the massive dilution to current shareholders.

Crypto Sector Turbulence as Coinbase Slumps
The Blockchain & Cryptocurrency sector faces cross-sector pressure as Coinbase Global (COIN) declines 2.34%. While ZOOZ's collapse is equity-specific, the broader sector remains volatile with Bitcoin trading near $117K. The sector's mixed performance highlights regulatory uncertainty and macroeconomic headwinds, though ZOOZ's strategic pivot stands apart as a unique dual-listed treasury experiment. The divergence between ZOOZ's equity collapse and COIN's modest decline underscores the market's differentiated valuation of crypto infrastructure plays versus pure-play treasury strategies.

Technical Divergence: Short-Term Overbought vs. Long-Term Ranging Pattern
• RSI: 85.88 (overbought, suggesting potential short-term reversal)
• MACD: 0.55 (bullish divergence) vs. 0.27 signal line
• Bollinger Bands: Current price at $1.945 near lower band ($1.75) after sharp drop
• 200D MA: $1.953 (price nearly aligned with long-term average)

Technical indicators show conflicting signals: RSI suggests overbought conditions for a potential bounce near $1.78-1.84 (200D support), while the 52-week range ($0.725-4.38) suggests potential for a test of the 52W low. The MACD histogram at 0.28 indicates fading bullish momentum, but the long-term MA alignment suggests a potential consolidation pattern. Given the absence of listed options, traders should focus on ETFs if available, but no leveraged ETF data exists for ZOOZ.

Backtest ZOOZ Power Stock Performance
The backtest of ZOOZ's performance after a -45% intraday plunge shows mixed results. While the 3-day win rate is 42.76%, the 10-day win rate is 44.74%, and the 30-day win rate is 36.84%, indicating a higher probability of positive returns in the short term, the overall return during the backtest period is -0.49%, with a maximum return of only 12.47% over 30 days. This suggests that while there is some potential for recovery, the ETF faces challenges in generating significant positive returns in the aftermath of a substantial intraday decline.

Critical Crossroads: Will Bitcoin Treasury Strategy Justify the 78% Dilution?
ZOOZ's transformation into a Bitcoin treasury play represents a high-stakes gamble with asymmetric risk. The $180M dilutive raise has triggered a 44.59% intraday collapse, but the 200D support at $1.78-1.84 offers a potential floor. Investors must monitor whether the Bitcoin allocation can offset the massive equity dilution. Sector leader Coinbase's -2.34% decline highlights broader crypto market fragility, but ZOOZ's unique dual-listed model could still attract speculative buyers if Bitcoin treasury yields outperform. Watch for a close below $1.75 to trigger further panic, or a rebound above $1.84 to signal stabilization.