Jiuzi Holdings Adopts Crypto Asset Investment Policy, Approves $1 Billion For Investment In Bitcoin, Ethereum, Binance’s BNB

Jiuzi Holdings (JZXN) announced on Wednesday that it has adopted a Crypto Asset Investment Policy and authorized up to $1 billion of cash reserves to be allocated to select digital assets under a controlled risk framework. 

JZXN’s stock soared more than 50% in pre-market trade. Retail sentiment around the penny stock moved higher within ‘extremely bullish’ territory amid ‘extremely high’ levels of chatter over the past day – both clocking their highest levels on Stocktwits in the past year. 

If premarket gains hold, the stock would be back near its June highs. The firm’s shares have climbed more than 15% year-to-date but suffered a dramatic one-day drop on April 24, losing over 68% of their value.

The move follows the appointment of Doug Buerger as COO to lead the initiative on Tuesday. The company said its initial investments would focus on Bitcoin (BTC), Ethereum (ETH), and Binance’s BNB token (BNB). It added that any expansion beyond those cryptocurrencies would require Board approval. 

The company announced it has also established a Crypto Asset Risk Committee, chaired by CFO Huijie Gao, to oversee implementation and report to the Board. CEO Tao Li called the policy a proactive step to enhance shareholder value.

“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,” said Buerger in a statement.

Jiuzi first announced its plans to become a digital asset treasury (DAT) in June, initiating a strategic move to acquire 1,000 Bitcoin. At the time, management said that the company intends to complete the acquisition over the next year through a dual-track approach combining additional stock issuance and cash purchases. 

Read also: Bitcoin, Ethereum Drift Lower As Crypto Market Remains Tepid – ETF Outflows Signal Pause In Institutional Demand

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