Chijet’s Cryptocurrency Gamble: Can It Rescue the Automaker During a Cash Crunch?

Nasdaq-listed

(NASDAQ: CJET) has finalized a $300 million private cryptocurrency placement, representing a substantial boost in capital to enhance its digital asset custody capabilities and support targeted acquisitions in the crypto storage industry. This fundraising, carried out with selected institutional investors outside the U.S., features units offered at $0.10 per ordinary share in cryptocurrency, along with three warrants per unit that can be exercised at $0.12 per share over three years, including cashless exercise provisions under certain circumstances, as stated in .

Disclosed on October 27, 2025, this deal comes after a difficult stretch for the company, whose stock has dropped more than 94% in the last half-year and currently holds a ratio of 0.19, indicating liquidity challenges, according to

. The funds raised will be managed under top-tier industry custody standards to meet regulatory compliance. CEO Melissa Chen highlighted that this capital raise demonstrates investor trust in Chijet's direction, allowing the company to "strengthen secure crypto custody infrastructure and pursue strategic acquisitions in the fast-changing digital asset storage landscape."

The private placement was carried out under exemptions from U.S. securities regulations, specifically Section 4(a)(2) and Regulation S of the Securities Act of 1933, according to the press release. This initiative is part of Chijet's broader financial approach, which has recently included $20 million and $15 million capital raises through private placements and registered direct offerings, as reported by Investing.com. Nonetheless, the company is facing regulatory challenges after receiving a Nasdaq warning for not maintaining the minimum $1.00 per share bid price for 30 straight trading days.

has until April 13, 2026, to restore compliance, with options like a reverse stock split being considered, as outlined in .

Chijet continues to focus on both traditional fuel vehicles and new energy vehicles (NEVs), with production sites in Jilin and Yantai, China, according to the press release. The company's move into digital asset custody highlights its strategy to diversify income sources amid the unpredictable automotive market. Experts point out that the growth of the crypto sector—driven by unprecedented inflows into

and ETFs—positions Chijet to benefit from increasing institutional demand for secure asset storage solutions.