Jiuzi Holdings Inc. (NASDAQ: JZXN), a retailer and franchisor of China’s New Energy Vehicles (NEVS), temporarily surged 55.5% in pre-market transactions on Wednesday. This came shortly after the company announced its $1 billion crypto investment plan.
This strategy focuses on Bitcoin (BTC), Ethereum (ETH), and BNB. A dedicated risk monitoring framework has been introduced. This move represents a strategic step towards diversifying corporate assets amid intense market competition.
Strategic crypto investment in competitive NEV markets
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Jiu-Jitsu operates at the forefront of China’s NEV sector. Handles vehicles of emerging domestic brands and international entrants. The company is listed in the US NASDAQ and shows its connection to the global capital markets. Meanwhile, China’s NEV market is the largest in the world, but it is extremely competitive. Following the cuts in government subsidies, domestic giants such as BYD and NIO and international players like Tesla are engaged in fierce price competition. Companies are looking for alternative growth strategies.
Against this backdrop, Jiu-Jitsu’s $1 billion crypto plan is a strategic step. The board-approved plan initially focuses on Bitcoin, Ethereum and BNB. The company emphasized governance and risk management. The size of the allocation attracted the attention of a strong market. Stocks temporarily surged 55.5% in pre-market trading.
Risk Monitoring and Corporate Governance
Jiu-Jitsu has established the Cryptocurrency Committee, led by CFO Gao Huijie. The committee oversees investment within a defined risk management framework. The company has made it clear that it will not support its digital assets. Expansion beyond approved cryptocurrency requires reassessment and board approval.
CEO Li Tao said, “This initiative represents a proactive step in financial management to protect and strengthen long-term shareholder value.” The statement illustrates a measured approach aimed at sustainable corporate growth rather than short-term speculation.
Recently appointed Dr. Doug Berger will oversee financial initiatives related to this strategy. Analysts said the plan is similar to other corporate cryptocurrency strategies, including MicroStrategy and Tesla. Controlled digital asset exposures provided new avenues for long-term value creation despite crypto volatility.
Market Responses and Strategic Implications
The short share surge reflects investors’ interest in companies that combine traditional business operations with strategic crypto exposure. Volatility remains an important consideration. The structured surveillance and transparency measures of Jiu-Jitsu emphasize a careful approach. The company’s approach may provide insight into how diversification of the Corporate Treasury complements the growth of China’s NEV market.
