On September 25, the board of directors of US-listed company Jiuzi New Energy (NASDAQ: JZXN) approved a crypto asset investment policy, authorizing up to $1 billion for the purchase of bitcoin (BTC), ethereum (ETH), and binance coin (BNB). This makes Jiuzi New Energy one of the first China-based enterprises to incorporate cryptocurrencies into its financial planning, highlighting the shift in global institutional attitudes toward digital assets.
● Investment Scope and Cap
The board approved allocating up to $1 billion from internal cash reserves to invest in BTC, ETH, and BNB under controlled risk. Any future expansion to other assets must be reviewed by the risk management committee. This fund aims for a prudent allocation to mainstream cryptocurrencies.
● Custody and Compliance Assurance
The company will not self-custody these assets but will instead entrust them to top-tier third-party custodians to ensure security and compliance. At the same time, a "Crypto Asset Risk Committee" has been established to oversee investment execution and risk prevention.
● Cash Reserve Optimization
In the face of US dollar inflation and geopolitical uncertainty, enterprises are viewing crypto assets as alternative reserve tools. Jiuzi New Energy's move aims to preserve asset value and enhance volatility resistance by integrating crypto into its cash management framework.
● Underlying Motivation
This decision is not just a financial adjustment but also a signal of Jiuzi New Energy's embrace of innovation. The main driving factors include: Responding to economic pressure and improving capital efficiency—low interest rates in traditional markets and US dollar depreciation make cryptocurrencies a hedging tool. Bitcoin is often compared to "digital gold," ethereum supports the DeFi ecosystem, and BNB benefits from the resilience of the Binance platform. Through investment, Jiuzi New Energy can preserve capital and stabilize returns to cope with international changes.
Riding the digital wave to enhance appeal—since 2020, US-listed companies like Tesla and MicroStrategy have made large-scale crypto purchases. As an auto dealer, Jiuzi New Energy's move strengthens its image as a tech-driven company, sending an innovation signal beyond environmental protection and attracting younger investors. Boosting shareholder value—the stock price surged by as much as 37% after the announcement. Analysts believe this can attract attention from tech funds and enhance brand and shareholder returns.
● Industry Trend: Accelerated Institutional Deployment
Jiuzi New Energy's move is a microcosm of the global wave of corporate crypto allocation. On September 24, Japan's Mac House increased its holdings by 23.9 BTC, bringing its total to 64.6 BTC; US-based Autris acquired BitCorp Capital to expand its bitcoin reserves. Nasdaq-listed Iveda also received approval for a similar policy, promoting asset diversification. On that day, the total disclosed global crypto investment exceeded $1.03 billion, indicating that traditional enterprises are shifting from trial to systematic execution. Jiuzi New Energy is leveraging this trend to solidify its competitive advantage.
● Potential Challenges: Cautious Progress Despite Optimistic Outlook
Volatility risk management/crypto market turbulence—the company plans phased investments to buffer risks, but the real test is just beginning. Regulatory and transparency pressure—the SEC is sensitive to crypto, so Jiuzi New Energy must ensure compliant operations to avoid potential fines. Team capability building—forming a crypto expert team is key; otherwise, execution may deviate.
● Conclusion
The institutionalization turning point for crypto allocation—Jiuzi New Energy's $1 billion plan marks a deepening of corporate digital transformation. It is more than a financial move; it reflects the trend of traditional industries integrating with blockchain. As the crypto economy moves toward institutionalization, such entrants are piecing together a broader ecosystem. In the future, the implementation results and international influence are worth tracking—this may be another milestone in the mainstream adoption of digital assets.
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