Jiuzi Holdings to Purchase $1 Billion in Crypto Assets

Despite the recent volatility of the cryptocurrency markets, at a time when investors are starting to show renewed interest, China-based Jiuzi Holdings has taken a remarkable step and announced that it will purchase $1 billion worth of Bitcoin, Ethereum and altcoins. The company plans to invest a portion of its cash reserves in crypto assets in line with the decision taken by its board of directors.

Jiuzi Holdings said in a statement that this strategy is part of its long-term treasury management approach. The company said it will manage key crypto assets such as Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB) through secure methods overseen by a "Crypto Asset Risk Committee" led by CFO Huijie Gao. This will ensure the security of investments and provide continuity for investors.

Jiuzi Holdings, which actively provides smart charging infrastructure for electric vehicles, currently has a market capitalization of $89 million. However, the company is facing profitability issues, with negative EBITDA of $40.4 million over the past 12 months, according to InvestingPro data. The stock has been a volatile performer, with a beta of 1.63, attracting investor attention.

Jiuzi's new COO, Dr. Doug Buerger, will lead the company's foray into crypto investments. Buerger brings experience in blockchain, artificial intelligence and digital currency ecosystems. He described this investment strategy as a value preservation plan against macroeconomic uncertainties, rather than short-term trading. CEO Tao Li explained that this new strategy is a proactive step to protect and enhance long-term shareholder value.

Jiuzi Holdings will publicly disclose its significant crypto acquisitions through its Form 6-K filings with the SEC, and the amount of this investment has risen at a remarkable level in the industry. With companies increasingly using crypto assets for treasury management, investors may want to keep a close eye on Jiuzi's processes.