Electric vehicle retailer Jiuzi Holdings announced plans to acquire 1,000 Bitcoins over the next year, marking a significant pivot into digital assets.
The company said it would fund the purchase through a mix of additional stock issuance and cash purchases, signaling growing corporate confidence in Bitcoin (BTC) as a long-term strategic asset, according to the company.
The board-approved acquisition plan underscores Jiuzi’s belief in the long-term potential of blockchain technology and aims to diversify the company’s asset base amid shifting market conditions.
Jiuzi Holdings Inc is a China-based enterprise focused on running retail outlets for new energy vehicles. Operating under the Jiuzi brand, the company sells battery-operated electric vehicles and plug-in electric vehicles, primarily in third and fourth-tier cities across China.
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Bitcoin’s liquidity and volatility
Jiuzi cited Bitcoin’s liquidity and historical value appreciation as key reasons for its decision.
“We are well aware of the volatility and uncertainty of the Bitcoin market, but it is based on a deep understanding of blockchain technology and a long-term bullish belief that we decided to take this step,” the company’s CEO said in a statement.
To finance the move, Jiuzi will issue new shares while also tapping into its cash reserves and potentially seeking external funding. The dual-track strategy, the company said, balances capital-raising needs with shareholder interests.
The move positions Jiuzi alongside a growing list of public companies adding Bitcoin to their balance sheets in pursuit of asset diversification and inflation hedging. Public companies like Genius Group and KULR Technology Group have increased their Bitcoin holdings with multimillion-dollar purchases to expand their crypto treasuries.
The company also plans to explore broader blockchain applications beyond asset holdings, signaling a long-term interest in Web3-related technologies.
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