Chinese EV technology firm Juizi Holdings’ board has authorized the use of up to one billion dollars in company funds toward a cryptocurrency treasury.
According to a Sept. 24 press release, Juizi’s treasury investments will be limited to Bitcoin , Ethereum , and BNB . Expansion to other coins is subject to board approval. The firm will also establish a “Crypto Asset Risk Committee” under CFO Huijie Gao and Juizi will not self-custody its acquired crypto assets. The company also brought new COO Doug Buerger onboard to lead the treasury initiative.
Buerger said in a statement that Juizi viewed crypto assets as long-term stores of value to hedge against macroeconomic uncertainties. “We are not engaging in short-term trading or speculation.”
The news appears to have spurred a surge in Juizi stock (JZXN). As of the time of this article’s publication, JZXN is up nearly 80% for the week and about 5% for the day. Before settling there, it peaked at about 26% up over the past 24 hours as markets opened in the US.
There appears to be a recent uptick in the number of firms adopting cryptocurrency reserve strategies. As Coinspeaker reported on Sept. 22, financial services firm Strive Inc. purchased medical technology firm Semler Scientific in a deal that saw the two firms merge their cryptocurrency treasuries to become the world’s 14th largest public Bitcoin holder.
Meanwhile, the government of Kyrgyzstan’s recently advanced legislation that, upon its passage, would create a state cryptocurrency reserve and establish comprehensive digital asset regulations. And Philippine lawmakers introduced new legislation in August to establish a national Bitcoin reserve that would be locked for 20 years and expanded with annual purchases of 2,000 BTC for at least five years.
