Chinese auto dealer Jiuzi New Energy announced that it will purchase 1,000 Bitcoins next year

Recently, Chinese auto dealer Jiuzi New Energy (NASDAQ: JZXN) officially announced that the company's board of directors has approved a major strategic plan: to acquire 1,000 bitcoins in batches in the next year through a combination of additional stock issuance and cash payment. This move marks a key step for the company in the field of digital assets, sending a clear signal that it firmly embraces the future development of blockchain and cryptocurrency.

According to the official statement, the Bitcoin acquisition plan is a decision made by the company after comprehensive evaluation and in-depth research. JZXN management believes that Bitcoin, as the cryptocurrency with the largest market value, has strong liquidity and market awareness, and its performance in recent years also reflects the value storage function of "digital gold". The company hopes to use the long-term potential of Bitcoin to not only optimize the asset structure and diversify the risks of traditional businesses, but also enhance the overall capital attractiveness and anti-cyclical ability of the company.

The acquisition plan is promoted in a "two-track" manner: on the one hand, the company plans to issue additional shares in a timely manner to raise part of the funds; on the other hand, it will also mobilize existing cash reserves and possible external financing methods to ensure that the acquisition plan is funded and risk-controlled.

JZXN's CEO said in the announcement: "We are well aware that there are still fluctuations and uncertainties in the Bitcoin market, but our understanding and belief in blockchain technology is long-term and firm. Through this acquisition, Bitcoin will become an important part of our asset portfolio and will also be the starting point for our new round of technology and financial transformation."

Company Background: From Smart Electric Vehicles to Digital Asset Explorers

Jiuzi Holdings Inc., headquartered in Zhejiang Province, China, is a company mainly engaged in electric vehicle (EV) retail and service network. The company is committed to opening and operating new energy vehicle stores in third-tier and lower cities in China. Currently, its cooperative stores cover multiple provinces and represent multiple mainstream new energy brands in China. Since listing on Nasdaq in 2021, JZXN has continued to seek diversified development paths to cope with cyclical changes in the industry and expand its business territory.

As blockchain technology penetrates into multiple industries such as finance, logistics, and retail, more and more companies are beginning to explore the role of digital assets in corporate management and value-added. It can be foreseen that in the context of continued clarity of supervision and increasing maturity of encryption infrastructure, more companies will consider incorporating encryption assets into their capital operation system in the future. This action by Jiuzi New Energy may become one of the important landmark events in the “corporatization” of crypto assets.