Jiuzi Holdings, a company primarily known for its new energy vehicle charging stations across China, has announced a significant strategic shift with its formal entry into the cryptocurrency market. The company's board has officially approved a 'Crypto Asset Investment Policy,' authorizing an allocation of up to $1 billion of its cash reserves for investment in cryptocurrencies. This move positions Jiuzi Holdings among a growing number of publicly traded companies integrating digital assets into their treasury strategies.

The newly approved policy outlines a structured risk framework with strict guardrails to manage the substantial investment. Initially, the allocations will be limited to Bitcoin and other established cryptocurrencies, with a clear cap of $1 billion. Any future expansion into a wider array of digital assets would necessitate further approval from the board. Furthermore, Jiuzi Holdings has emphasized a commitment to robust security, stating it will not self-custody its crypto holdings. Instead, it plans to rely on top-tier third-party providers renowned for their security protocols to manage its assets.

To ensure stringent oversight and strategic execution, Jiuzi Holdings has established a new Crypto Asset Risk Committee. This committee will be led by CFO Huijie Gao and will be responsible for continuous monitoring and management of the crypto investments. Updates on the policy's implementation and performance will be regularly reported to the board and publicly disclosed through SEC filings, ensuring transparency.

The timing of this announcement closely follows the appointment of Dr. Doug Buerger as Chief Operating Officer, a move specifically made to spearhead this new initiative. Dr. Buerger, described by the firm as an industry veteran with decades of experience spanning blockchain and artificial intelligence, will be instrumental in overseeing the strategy, governance, and overall execution of this ambitious treasury program. He articulated the company's long-term vision, stating, "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."

Jiuzi Holdings' decision to deploy up to $1 billion into cryptocurrencies is particularly notable given its current market size, drawing parallels with but also distinguishing itself from larger corporations like Tesla and MicroStrategy that have made similar allocations. The market has reacted positively to the news, with Jiuzi Holdings' stock (JZXN) reportedly trading up over 40% in premarket trading, reflecting investor optimism regarding this strategic direction.