Jiuzi Holdings relies on cryptocurrency for long-term value appreciation

Jiuzi Holdings, a publicly traded company in the field of electric mobility, has decided to pursue a crypto investment strategy. The company's board of directors has authorized the firm to invest up to one billion dollars in the purchase and holding of Bitcoin, Ethereum, and BNB. This decision represents a significant step in securing and increasing long-term value for shareholders, according to CEO Tao Li in a press release. The stock price of Jiuzi Holdings, trading under the symbol JZXN, experienced a short-term increase to $2.38 on the news, representing a 47% increase from Tuesday’s closing price, before the price fell back. Currently, the stock is trading at $1.46, reflecting a nearly 10% decline on the day. Overall, the stock’s value has dropped by more than 99.9% over the past five years. Jiuzi Holdings plans to invest its liquid assets in Bitcoin, Ethereum, and BNB according to a strict risk framework. Further crypto investments require board approval. Despite the authorization to invest up to one billion dollars, the company's recent financial records show only about $943,000 in liquid assets and a net loss of approximately $55 million for the fiscal year. It remains unclear how Jiuzi Holdings will raise the funds for the Bitcoin purchase, as no plans for capital-raising measures such as convertible notes or private capital infusions have been announced. However, the company will avoid the custody of its crypto assets. Instead, a special committee for the risk assessment of crypto assets has been established. Dr. Doug Buerger, the newly appointed COO of the company, stated that Jiuzi Holdings is not interested in short-term trading or speculation but views crypto assets as a long-term store of value to hedge against macroeconomic uncertainties.