Jiuzi Holdings, a company based in Hangzhou, China (NASDAQ: JZXN), has approved a new plan to invest in cryptocurrencies. The firm is allocating up to $1 billion of its cash reserves to be used for this.
According to the press release, the board of directors approved the plan today and plans to start with Bitcoin and other selected coins. A new Crypto Asset Risk Committee, led by CFO Huijie Gao, will oversee the program. In addition, the newly appointed COO Dr. Doug Buerger, will manage the strategy and daily operations.
Buerger has decades of experience in blockchain and artificial intelligence. In the press release, he explained the company is not trying to trade or make quick profits.
“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,” he said.
The plan for purchase has clear limits as the firm can spend up to $1 billion. First, Bitcoin (BTC), Ethereum (ETH), and BNB will be purchased. If any other tokens are to be considered, they would require additional approval from the board. Jiuzi also mentioned that it will have top-tier third-party providers to manage the assets.
The Crypto Asset Risk Committee will report regularly to the board and share updates with the public through SEC filings. Dr. Buerger said he is “thrilled to lead this important treasury initiative supported by such a forward-thinking board and management team.” Meanwhile, this is coming just a day after Dr. Buerger was hired as COO.
Shortly after the news was shared, the company’s stock (JZXN) jumped by 40% in premarket trading to $2.91. However, the price has dropped to $1.82 but is still up 12% from the previous day.
Jiuzi Holdings mainly runs charging stations for electric vehicles in smaller cities in China. To the company, adopting crypto is part of its effort to manage cash reserves wisely and support long-term shareholder value.
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