Jiuzi Holdings is set to initiate a billion-dollar corporate treasury strategy focused on three digital assets, guided by the newly appointed COO, Dr. Doug Buerger, positioning crypto as a vital reserve.
Summary
- Jiuzi Holdings has endorsed a $1 billion treasury initiative aimed at Bitcoin, Ethereum, and BNB.
- This decision follows the hiring of crypto expert Dr. Doug Buerger as COO.
- An overseeing risk committee led by CFO Huijie Gao will manage the implementation of this policy.
In a statement on Sept. 24, the Nasdaq-listed EV charging firm announced the formal approval of its Crypto Asset Investment Policy by the board. This framework permits the allocation of up to $1 billion from its cash reserves into Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
The initiative, which includes creating a dedicated risk committee headed by CFO Huijie Gao, aligns with the recent appointment of Dr. Doug Buerger, acknowledged in the digital asset domain, as Jiuzi’s new Chief Operating Officer.
“I am excited to steer this essential treasury initiative backed by such a visionary Board and management team. Our focus is not on short-term trades or speculation; we see crypto assets as long-term value stores to mitigate macroeconomic risks,” Buerger expressed.
A transition to digital reserves
For Jiuzi’s executive team, this transition is viewed as a protective measure rather than a speculative venture. CEO Tao Li characterized the new policy as a proactive strategy for treasury management, aimed at protecting and enhancing long-term shareholder value. In his perspective, crypto assets offer a safeguard against economic turbulence that traditional reserves find challenging to accommodate.
Importantly, the company has stated it will not self-custody its assets, choosing instead to utilize “highest-tier custody standards” through third-party experts.
Jiuzi Holdings is not a technology startup; rather, it is an electric vehicle infrastructure company located in Hangzhou, making strides in China’s smaller cities with its smart charging network. Its business model focuses on promoting carbon neutrality through the establishment of fast-charging stations and energy storage solutions.
By integrating crypto into its reserves, the company aligns itself with a growing trend among public firms that recognize digital assets as a formal component of balance sheet strategy, extending this trend beyond the tech industry.
This cohort has welcomed a new member. On the same day as Jiuzi’s announcement, Arizona-based Iveda announced that its board also approved the inclusion of cryptocurrency in its corporate treasury.
Similar to Jiuzi, Iveda presented this move as a forward-thinking capital allocation rather than a speculative play. These dual announcements highlight a trend wherein companies across different sectors and regions are arriving at the same conclusion: digital assets have now become an integral element of corporate treasury strategy.
The challenges
The aspirations of these companies come with inherent risks. Fintech analyst Jeff Gapusan observed in a recent Forbes article that the emergence of digital asset treasury firms carries dual-edged implications. He highlighted that while regulatory clarity and institutional interest drive enthusiasm, this model is fraught with risks related to market fluctuations and capital expenditures.
The positive feedback loop that rewards companies in thriving markets can unravel swiftly when sentiment changes, leaving balance sheets susceptible. Beyond price volatility, firms must also address ongoing expenses associated with custody, compliance, and risk management.
