Faced with a tense economic context and still high rates, some companies meet their copy in cash management. The latest is the Chinese company Jiuzi Holdings. Listed at the Nasdaq, but little known to the general public, the Chinese company has just authorized an investment of up to $ 1 billion in cryptos. This is an unexpected turn for an actor outside the web3, which is now betting on Bitcoin.
In short
- Jiuzi Holdings, an unknown Chinese SME, announces an investment plan up to 1 billion dollars in crypto.
- The company adopts a framed crypto policy, with a clear ceiling, an initial focus on Bitcoin and reinforced governance measures.
- A dedicated committee will supervise investments, without recourse to self-preservation, and the movements will be declared to the dry.
- Jiuzi's strategy could inspire other intermediate companies, while attracting the attention of regulators.
A crypto policy supervised and unprecedented for Jiuzi Holdings
This September 24, Jiuzi Holdings, a Chinese company specializing in charging stations for electric vehicles, formalized a large -scale strategic turn, while Michael Saylor predicts a strong recovery of Bitcoin.
Its board of directors has validated a new investment policy in crypto-actives, entitled ” Crypto asset investment policy »allowing to allocate up to $ 1 billion in cash to buy cryptos.
“The Council approved authorization to invest up to a billion dollars in cryptocurrencies under a structured risk management framework”said the company in a statement published on Wednesday. This massive initiative is based on a strict governance framework.
Here are the main measures announced by Jiuzi Holdings:
- A strict ceiling: the total allowance cannot exceed $ 1 billion, even if it will be progressive;
- An initial focus on bitcoin: purchases will focus first on Bitcoin and some other major cryptos. Any subsequent diversification will require specific validation of the council;
- No self-preservation of assets: Cryptos will be stored via leading third-party providers in terms of security;
- Reinforced supervision: a “Crypto Asset Risk Committee”led by the CFO Huijie Gao, was formed to supervise these operations;
- Regulatory transparency: transactions and developments in the policy will be declared to the dry in the context of American regulatory compliance.
This strategic decision coincides with The appointment, one day earlier, of Doug Buerger At the post of Chief Operating Officer. Presented as a veteran of blockchain and artificial intelligence, he will be responsible for executing this policy and controlling the company's crypto cash strategy.
The joint announcement of these two initiatives testifies to a clear alignment between the operational management and the board of directors on the desire to include Jiuzi Holdings in a long-term approach vis-à-vis the cryptos.
A daring strategy for a modest company
Beyond politics itself, it is the positioning of the company that attracts attention. Jiuzi Holdings, the main activity of which consists in operating charging stations for electric vehicles in second -class Chinese cities, is not one of the world's technological giants.
However, with an envelope of $ 1 billion potentially dedicated to cryptos, the company aligns in value on initiatives carried out by groups like Tesla or Strategy, even though its market capitalization remains much lower.
In an official press release, Doug Buerger has underlines The defensive and long term dimension of the approach:“We do not engage in short -term speculation or trading, we consider cryptos as long -term reserves to cover ourselves against macroeconomic uncertainties”.
This orientation differs significantly from that adopted by other actors. Where some companies have used Bitcoin as an asset of conviction, even as a central strategic instrument, Jiuzi seems to bet on a more balanced and institutional approach, by integrating cryptos into a logic of treasury diversification.
In addition, the explicit refusal of Auto-Custody testifies to a desire to comply with the best risk management practices, based on external providers recognized for the care of these assets. On the stock market, the announcement also had an immediate effect. The JZXN title flew by more than 40 % in pre-market, a sign of a favorable reception by investors.
This decision could have notable repercussions. On the one hand, it opens the way to other intermediate size companies that still hesitate to cross the Cape of Cryptos. On the other hand, it could encourage regulators to closer to the cash movements linked to cryptos, especially in China where the regulatory framework remains vague despite official discussions for the approval of stablecoins backed by Yuan. It will now be necessary to observe the first reports to the dry to assess the concrete implementation of this strategy, and if other companies will follow suit in Jiuzi Holdings in the coming months.
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