Jiuzi Holdings bet $1 billion on crypto treasury focused on Bitcoin, Ethereum and BNB
|- Jiuzi Holdings announced that it will raise $1 billion to establish a crypto treasury focused on Bitcoin, Ethereum, and BNB.
- The company stated that it will not self-custody its acquired crypto holdings.
- Jiuzi hinted at the possibility of expanding its treasury to include other crypto assets, subject to board approval.
China-based Jiuzi Holdings (JZXN) announced that its Board of Directors has approved a crypto investment policy, which will enable the company to purchase up to $1 billion in Bitcoin (BTC), Ethereum (ETH), and BNB.
Jiuzi plans to establish crypto treasury holding Bitcoin, Ethereum and BNB
Nasdaq-listed Jiuzi Holdings stated on Wednesday that it will establish a digital asset treasury focused on holding Bitcoin, Ethereum and BNB, following approval of a crypto investment policy by its Board of Directors.
The company plans to use up to $1 billion of its cash reserves to buy and hold these assets.
The move follows Jiuzi's appointment of crypto expert Dr. Doug Buerger as its Chief Operating Officer (COO).
"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.
The company noted that it formed a Crypto Asset Risk Committee to monitor the execution of its strategy and deliver regular updates to the Board.
Jiuzi further hinted at the possibility of adding other crypto assets to the reserve in the future, subject to review and approval from the Risk Committee. It also added that it will not self-custody any of the acquired crypto assets in its reserve.
"Adopting the Crypto Asset Investment Policy represents a proactive step in our treasury management to safeguard and enhance long-term shareholder value," said Jiuzi CEO Tao Li.
The company joins several publicly traded firms that are rapidly adopting a cryptocurrency reserve. It is also one of the few companies seeking to diversify its crypto portfolio by holding more than one digital asset.
Notably, institutional demand for Ethereum and BNB treasuries has grown over the past few months, contributing to a general rally in altcoins.
Jiuzi shares declined 32% at the market close on Wednesday, despite rallying over 50% earlier in the day.
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