Chinese electric vehicle manufacturer Jiuzi Holdings, based in Hangzhou and publicly listed on Nasdaq, has announced a bold agreement to acquire 10,000 Bitcoins—valued at approximately $1 billion—by issuing new company shares to a corporate investor. According to the company’s statement, the transaction involves a direct transfer of 10,000 Bitcoins to Jiuzi Holdings in return for an equivalent amount in shares, notably without any cash component. This novel approach has drawn significant attention within both the crypto and financial sectors.
Structure and Details of the Agreement
The transaction, as described by Jiuzi Holdings, is set to add Bitcoin to its corporate balance sheet while providing the investor with an ownership stake in the electric vehicle firm. Both parties are planning to develop a long-term partnership extending beyond this asset swap, encompassing international crypto payments, liquidity management, and broader ecosystem collaboration. Importantly, the acquired Bitcoins will not be held directly by Jiuzi Holdings but will instead be safeguarded by a regulated third-party custodian, the company clarified.
Valuation Concerns and Financial Questions
A major question that emerged following the announcement revolves around Jiuzi Holdings’ market capitalization, which was significantly below $1 billion prior to this deal. The plan to issue shares worth such a large sum in exchange for Bitcoin could result in substantial dilution for existing shareholders. Some have also speculated that the valuation used in this transaction may not be aligned with the company’s prevailing market price but might rely on alternative calculations. Jiuzi Holdings has not provided any further details on this specific issue.
It is important to note that the deal has not been finalized. Completion hinges on the signing of definitive agreements and the fulfillment of all necessary filings with the U.S. Securities and Exchange Commission (SEC). Until final documentation is published, the transaction cannot be considered completed, nor can all details be deemed confirmed.
Jiuzi Holdings’ Previous Crypto Ventures
This is not Jiuzi Holdings’ first foray into cryptocurrency. Toward the end of 2025, the company announced a partnership with the Solv Foundation intended to channel investments of up to $1 billion into yield-bearing Bitcoin products via the SolvBTC.BNB vault. To oversee crypto asset management within the company, a Risk Committee was created under the supervision of CFO Huijie Gao, while blockchain veteran Doug Buerger was appointed as Head of Operations.
The fact that Jiuzi Holdings has announced two large-scale, billion-dollar crypto-oriented initiatives within a single year—despite holding relatively low cash reserves—has raised eyebrows. In both announcements, the names of the investors have not been fully disclosed, and each time, the company saw increases in both share price and trading volume shortly afterward.
Although these ventures remain unconfirmed at this stage, they signal that Jiuzi Holdings is committed to adding a significant volume of Bitcoin to its balance sheet. However, whether these ambitious plans align with its true financial capacity will only become clear once all regulatory filings and public disclosures are released.
Market Conditions and Industry Context
Jiuzi’s move comes at a tumultuous time for the cryptocurrency market. On the same day as its announcement, reports surfaced that former U.S. President Donald Trump was pressuring banks to ease the path for crypto integration, OKX launched stock futures trading, and stablecoin revenues on the Ethereum network were being touted in the billions annually. In this climate, the trend of corporations holding Bitcoin on their balance sheets has become a major topic of discussion.
Other firms like MicroStrategy have witnessed tangible effects of such strategies in their share prices, prompting smaller publicly traded companies across diverse industries to pursue similar models. Yet, there is considerable skepticism about whether Jiuzi Holdings, given its current financial structure, can successfully execute a deal of this scale.
Attempts by smaller companies to acquire large-scale crypto assets are sometimes interpreted as strategic corporate maneuvers, while at other times they are seen as efforts to drive up trading activity. Ultimately, whether such deals gain legitimacy will depend on whether the enterprise completes the requisite formal reporting and assures a transparent legal framework for the transaction.
