Electric vehicle manufacturer Jiuzi Holdings, operating in Hangzhou, China, as a Nasdaq-listed company, signed an agreement with one of the institutional investors aiming to acquire 10,000 Bitcoins worth approximately $1 billion in exchange for shares. In the announcement, it was stated that 10,000 Bitcoins would be transferred directly from a certain investor to Jiuzi Holdings and the same amount of company shares would be given in return. It was noteworthy that cash was not used in the transaction.
Structure and Details of the Agreement
According to Jiuzi Holdings’ statement, this transaction will enable the company to add Bitcoin to its balance sheet, while the investor will become a shareholder of the Chinese electric vehicle manufacturer. Beyond this, the parties plan to maintain a long-term partnership in areas such as international cryptocurrency payments, liquidity management and ecosystem cooperation. It was announced that the Bitcoin to be purchased will not be kept in the company’s safe, but will be kept through a regulated third-party custodian.
Valuation and Financial Discrepancies
The most important question mark that attracted attention after the announcement was that the market value of the company was well below 1 billion dollars before the announcement. For a company with a historically lower market capitalization to acquire Bitcoin by issuing shares worth around $1 billion could result in significant dilution for existing shareholders. Additionally, this type of valuation method may be based on a different calculation that is not based on the stock market price of the company. No details were given regarding this issue in the statements made by the company.
The transaction in question has not been finalized. Final contracts will need to be signed and related U.S. Securities and Exchange Commission (SEC) reporting will need to be completed. It cannot be said that the transaction is completed or all the details are clarified until the final documents are published.
Past Crypto Ventures of Jiuzi Holdings
This is not the first time Jiuzi Holdings has stepped into the cryptocurrency world. In late 2025, it announced that it planned to invest in Bitcoin products yielding up to $1 billion through the SolvBTC.BNB vault, in collaboration with the Solv Foundation. It was announced that a Risk Committee was formed for crypto asset management within the company, under the leadership of Finance Director Huijie Gao, and Doug Buerger, who is experienced in the field of blockchain, was appointed as the manager responsible for operations.
It is noteworthy that the company has introduced two consecutive large-scale cryptocurrency initiatives worth $ 1 billion in the last year, although it does not have a large amount of cash in its safe. Both announcements were made with investors whose exact names were not shared, and after both of them, there was an increase in the share price and transaction volume.
Although these transactions announced by the company were not considered final, they indicated that the company’s strategy to add a significant amount of Bitcoin to its balance sheet was continuing. However, legal reports are expected to be published to clarify whether it is compatible with the current financial capacity.
Market Dynamics and Sectoral Framework
Jiuzi’s plan coincides with an active period in the cryptocurrency market. On the same day, it was reported that former US President Donald Trump put pressure on banks to facilitate crypto, OKX launched stock futures, and billions of dollars were announced annually in stablecoin revenues on the Ethereum network. The strategy of keeping Bitcoin in the safes of corporate companies has recently emerged as an important agenda item.
While similar strategies of companies such as MicroStrategy are reflected in their share prices, smaller publicly traded institutions from different sectors are also trying to implement this model. However, it is a matter of curiosity whether Jiuzi will be able to successfully carry out a transaction of the size it plans with its current financial structure.
Attempts by small-scale companies to acquire high amounts of crypto assets can sometimes be considered as real corporate transformations, and sometimes as steps to increase transaction volume. The decisive factor at this point will be whether the transaction can be placed on legal grounds with the official reporting of the business.
