Jiuzi Holdings approves $1B crypto investment, targeting BTC, ETH, and BNB to diversify treasury amid global financial uncertainty.
Chinese electric vehicle seller Jiuzi Holdings has approved a new crypto investment policy that could reshape its treasury strategy. Its board of directors announced that the company has authorized up to $1 billion in purchases of selected digital assets. The move is among the biggest moves by a Chinese carmaker into crypto, signaling a diversification of financial holdings at a time of global market uncertainty.
Jiuzi’s Crypto Investment Plan Backed by Risk Framework
The development comes after the recent hiring of Dr. Doug Buerger as chief operating officer. Buerger, a known expert in blockchain technology and artificial intelligence, will be leading the company’s new treasury initiative. Jiuzi, a Nasdaq-listed entity, has made this policy a capable tool to protect and increase shareholder value. In a statement released by the company, CEO Tao Li said the policy was a proactive decision for long-term asset management:
Based on the information disclosed by Jiuzi, Jiuzi’s policy is designed with the characteristics of strict rules. The company has been officially permitted by the board to invest up to a maximum of $1 billion in cryptocurrency acquisitions under a prudent risk framework for the company.
From the very beginning, investment will be confined to three large cryptocurrency assets – the Bitcoin currency, the Ethereum cryptocurrency, and the Binance Coin cryptocurrency. Any diversification into other tokens will need to be reviewed and approved by the company’s Risk Committee. This makes sure to limit any exposure to speculation and focus on established assets.
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The policy also makes a reference to custody and control measures. Jiuzi has stated that it will not self-custody assets acquired and rather has to outsource the custody to external providers with proven security standards. CFO Huijie Gao has created a new “Crypto Asset Risk Committee” to oversee the investment process. This body will have responsibility for compliance, monitoring transactions, and making a direct report to the board of directors.
Jiuzi Eyes Inflation Hedge Through Bitcoin, Ethereum
Dr. Buerger was confident in the long-term perspective of the digital assets. He said that its initiative toward this goal is not a speculative investment, which is driven by short-term interests. However, the company views it as a mechanism to shed value against international uncertainties. In addition, he noted that virtual currencies such as Bitcoin and Ethereum are emerging as popular stores of value. They can help hedge against inflation risk and currency fluctuations.
Observers feel that Jiuzi’s crypto involvement could inspire other mid-cap firms in Asia to follow in their footsteps with treasury strategies. Since Jiuzi has a billion-dollar limit, its whole investment could make it a significant institutional holder of Bitcoin and Ethereum. Such a move would extend its monetary horizons as well as demonstrate increasing acceptance of digital assets by corporate organizations beyond technical circles.
In addition, the implementation of such a policy is also likely to impact Jiuzi’s liquidity management in future activities. By distributing reserves into digital assets, the company would be less dependent on traditional banking systems. However, the approach comes with risks due to the volatility of the crypto market. The key to the success of this strategy, observers say, will be prudent risk management and long-term discipline.
Jiuzi takes a high-risk, high-reward approach by integrating crypto into its corporate balance sheet. As adoption increases, these policies may set a new benchmark for treasury diversification. Additionally, they could impact corporate finance and digital asset markets significantly.
