Jiuzi Holdings Launches $1B Crypto Reserve Plan in Bitcoin, Ethereum, BNB

China-based Jiuzi Holdings has launched a $1 billion cryptocurrency treasury initiative, joining the growing wave of corporate...

Quick overview

  • Jiuzi Holdings has initiated a $1 billion cryptocurrency treasury initiative, focusing on Bitcoin, Ethereum, and Binance Coin.
  • The company established a Crypto Asset Risk Committee to ensure governance and transparency in managing its digital assets.
  • Market reactions to the announcement saw Jiuzi's stock rise 55% in premarket trading before dropping 32% during the session.
  • This move aligns with a broader corporate trend of diversifying reserves through digital assets as a hedge against economic uncertainty.

China-based Jiuzi Holdings has launched a $1 billion cryptocurrency treasury initiative, joining the growing wave of corporate digital asset adoption. The company’s board has approved a Crypto Asset Investment Policy with Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB) as the first allocations. A newly formed Crypto Asset Risk Committee, led by CFO Huijie Gao, will oversee the program to ensure strict governance and transparency.

CEO Tao Li explained the strategy, “This policy allows us to proactively manage reserves and prepare for long term economic changes.” The company will not engage in speculative trading and will store assets with trusted custodians.

Oversight and Market Reaction

Dr. Doug Buerger, a well known cryptocurrency expert, has been appointed as Chief Operating Officer. According to Buerger, “This is a forward looking hedge against global economic uncertainty not a short term speculation.”

Market reacted immediately. Jiuzi Holdings’ stock rose 55% in premarket, then dropped 32% during the session, according to Yahoo Finance. The company had previously announced in May to acquire 1,000 BTC through stock issuance and cash purchases.

Key safeguards:

  • No speculative crypto trading.
  • Custodial services from top tier providers.
  • Regular SEC filings for transparency.

Corporate Trend in Digital Assets

Jiuzi is not alone in diversifying reserves through digital assets. Japan’s Metaplanet bought over $632 million in Bitcoin, becoming one of the top 5 corporate BTC holders. CEA Industries increased its BNB balance to 418,888 tokens after a $26 million purchase and BitMine added $86 million in Ethereum, strengthening its bullish ETH view.

Analysts note that while Bitcoin is the cornerstone of treasury allocations, corporate interest in Ethereum and BNB is growing. Forecasts by industry figures, including Tom Lee, suggest ETH could reach $12,000-$15,000 by year end, which means the impact of such accumulation strategies.

For Jiuzi, this is not just a treasury experiment, it’s an effort to follow the global financial trend where digital assets are becoming both stores of value and hedges against uncertainty.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

HFM

Doo Prime

XM

Best Forex Brokers