Jiuzi Holdings Plans Bitcoin Acquisition
Jiuzi Holdings, Inc., a company based in Hangzhou and listed on the Nasdaq under the ticker JZXN, has announced its intention to acquire 1,000 bitcoins over the next year. This initiative will be financed through a combination of new equity issuance and cash purchases, as detailed by the company this week.
The board of Jiuzi has greenlit this multifaceted acquisition approach, which is part of a strategic effort to diversify the firm’s asset portfolio and harness the anticipated long-term value of bitcoin.
Factors Influencing the Decision
The cryptocurrency market’s growing acceptance and the inherent value fluctuations of digital currencies played significant roles in influencing this decision, with JZXN emphasizing its strong belief in the potential of blockchain technology beyond financial assets. The company’s chief executive expressed optimism regarding blockchain’s versatility and its applications across various sectors, suggesting that the acquisition would not only strengthen the company’s financial structure but also bolster its resilience and profitability against market risks.
Funding the Procurement
To fund this bitcoin procurement, Jiuzi Holdings plans to initiate an equity offering, supplemented by internal funds and external financing. Shares of JZXN surged by 13.27% in reaction to the announcement on Friday, indicating positive market sentiment regarding the company’s strategic shift.
No detailed timeline or specifics surrounding the equity issuance were provided at this time. This move aligns with a broader trend of corporate adaptation to cryptocurrencies, as Jiuzi joins other entities like Abraaj Restaurants Group and Heritage Distilling in integrating digital assets into their financial strategies, despite the prevailing uncertainties in the regulatory landscape.
Company Background
Founded in 2010, Jiuzi Holdings has established itself in the automotive and technology industries and made its Nasdaq debut in 2021, signaling its aspirations for global expansion. The forthcoming bitcoin acquisition reflects its commitment to evolving within the financial technology landscape.
