The Event in Detail

Jiuzi Holdings Inc. (NASDAQ: JZXN), a Chinese provider of electric vehicle (EV) charging infrastructure, announced the formal approval of a new Crypto Asset Investment Policy by its Board of Directors. This policy authorizes the company to deploy up to $1 billion of its cash reserves into a selection of crypto assets. The initial focus for these investments will be on Bitcoin (BTC), Ethereum (ETH), and BNB.

Following this announcement, JZXN's stock experienced a significant market reaction, surging 37.04% to $2.22. During premarket trading, the stock saw an even larger increase of 55.5%.

Dr. Doug Buerger, recently appointed as Chief Operating Officer, will lead the treasury initiative. CEO Tao Li described the policy as "a proactive step in our treasury management to safeguard and enhance long-term shareholder value." Dr. Buerger further clarified the company's intent, stating, "We are not engaging in short-term trading or speculation; rather, we view crypto assets as long-term stores of value to hedge against macroeconomic uncertainties."

To oversee the implementation of this policy, a "Crypto Asset Risk Committee" has been established, led by CFO Huijie Gao. The policy framework includes stipulations against self-custody of acquired crypto assets, requiring adherence to "Highest-Tier Custody Standards." Any expansion beyond the initially approved cryptocurrencies will necessitate reassessment and approval from the Board's Risk Committee.

Financial Mechanics and Strategic Rationale

Jiuzi Holdings' strategy involves a direct allocation of up to $1 billion from its existing cash reserves into a defined portfolio of digital assets. This represents a significant capital deployment for a company primarily known for its EV infrastructure operations. The selection of Bitcoin, Ethereum, and BNB as initial investment targets aligns with their status as major cryptocurrencies by market capitalization and established liquidity.

CFO Huijie Gao's leadership of the Crypto Asset Risk Committee underscores a formal governance structure for this new treasury management approach. The emphasis on non-self-custody and "Highest-Tier Custody Standards" reflects a measured approach to mitigating operational and security risks associated with digital asset holdings. The long-term investment horizon, as articulated by company executives, positions this move as a strategic hedge against macroeconomic volatility and an effort to enhance shareholder value rather than short-term speculative trading.

Market Implications

The immediate market response to JZXN's announcement was a substantial increase in its stock price, indicating a positive investor reception to the strategic shift. This event signals a continued trend of institutional capital inflow into the crypto market, potentially fostering increased demand for various digital assets. Should other traditional companies adopt similar crypto investment strategies, it could further legitimize and expand the market's reach.

This move by Jiuzi Holdings contributes to the growing narrative of corporate treasury allocation to digital assets, echoing strategies seen from entities like MicroStrategy. While MicroStrategy remains the largest corporate holder with over 638,985 BTC, Jiuzi's billion-dollar commitment adds to the collective 1,011,387 BTC held in corporate treasuries by 135 public companies, representing approximately 3.3% of the total Bitcoin supply. The adoption of such a policy by an EV infrastructure provider could lead to its financial results becoming increasingly disconnected from its operational performance, requiring shareholders to evaluate alignment with their investment theses.

Broader Context

The institutional adoption of Bitcoin as a treasury reserve asset reached a significant inflection point in 2025, driven by evolving regulatory clarity, such as the EU MiCA and U.S. Genius Act, alongside the proliferation of institutional-grade custody solutions. Bitcoin's allocation within crypto portfolios rose to 30.95% in 2025, up from 25.4% in 2024. Institutions have demonstrated long-term confidence by adding more Bitcoin in 2025 than all U.S. spot exchange-traded products (ETPs) combined.

Bitcoin's low correlation to traditional assets positions it as an effective hedge against inflation and currency devaluation, influencing strategic diversification efforts. Approximately 25% of Bitcoin ETPs are held by institutions, with 85% of firms reportedly either already allocating to digital assets or planning to do so in 2025. Despite this robust adoption, the demand for corporate Bitcoin treasuries experienced a temporary slowdown in 2025, attributed to macroeconomic headwinds, including higher global interest rates and uncertain Federal Reserve policy. Concerns regarding market centralization and liquidity have emerged due to the increasing concentration of Bitcoin in institutional hands.