Jiuzi Holdings, Inc., a Chinese electric vehicle charging infrastructure company, has announced a bold move to allocate up to $1 billion of its cash reserves into cryptocurrencies, marking a significant strategic shift.

The company will not self-custody these assets but will rely on external security providers, with oversight managed by a Crypto Asset Risk Committee led by CFO Huijie Gao, ensuring strict security standards.

The investment framework is conservative, initially limiting allocations to Bitcoin, Ethereum, and BNB, with additional approvals required for expanding into other digital assets.

Despite the conservative selection, this $1 billion investment introduces considerable volatility and risk, given the unpredictable nature of cryptocurrencies.

CEO Tao Li described this move as a proactive effort to safeguard and enhance long-term shareholder value, viewing crypto assets as stores of value to hedge macroeconomic uncertainties.

Li emphasized that the policy is part of a strategic long-term approach, not aimed at short-term profits, and aligns with the company's broader vision.

While Jiuzi maintains a strong balance sheet, it faces profitability challenges, with a negative EBITDA of $40.4 million over the past year, indicating that this crypto investment is part of a broader strategic plan.

This move follows Tesla's adoption of Bitcoin as part of its treasury reserves, inspiring competitors like Jiuzi to explore similar cryptocurrency strategies.

The company has established strict custody standards, prohibiting self-custody, and will ensure oversight through professional security providers.

Jiuzi previously announced plans to acquire 1,000 Bitcoin over the next year through a combination of stock issuance and cash purchases, as part of its goal to become a digital asset treasury.

The investment policy includes guardrails, limiting initial allocations to Bitcoin, Ethereum, and BNB, with additional approvals needed for further expansion into other digital assets.

The appointment of Dr. Doug Buerger as COO underscores the company's strategic focus on long-term crypto holdings, emphasizing that these assets are intended as stores of value, not short-term speculation.

Jiuzi plans to disclose material crypto purchases via SEC Form 6-K filings, ensuring transparency and regulatory compliance in its digital asset strategy.