Jiuzi Holdings plans to invest a corporate Treasury mandate of $1 billion into three digital assets. This move is guided by Dr. Doug Buerger, the new Chief Operating Officer. It positions crypto as an important strategic reserve.
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- Jiuzi Holdings has approved a crypto-treasury of $1 billion, focusing on Bitcoin, Ethereum and BNB.
- It follows Dr. Doug Buerger’s appointment as CEO.
- Huijie Gao (CFO) will lead a newly formed risk committee that oversees policy implementation.
It is a good idea to get a hold of a person who can help you. announcement The Nasdaq-listed company announced on September 24 that it had adopted an official Crypto Asset Investment Policy. The framework allows the company to allocate up to 1 billion dollars of its cash reserves towards Bitcoin (BTC), Ethereum(ETH), or Binance Coin (BNB).
Jiuzi has appointed Dr. Doug Buerger to be its new Chief Operating officer. He is an established figure within the digital assets space.
“I am thrilled to lead this important treasury initiative supported by such a forward-thinking Board and management team. We are not engaging in short-term trading or speculation; rather, we view crypto assets as long-term stores of value to hedge against macroeconomic uncertainties,” Buerger stated.
A pivot into digital reserves
Jiuzi’s management views the change as more of a precaution than speculative. Tao Li said the company’s new policy was a proactive approach for treasury, designed to protect and increase shareholder value over time. Crypto assets, according to Tao Li, provide a hedge for macroeconomic downturns which traditional reserves find difficult to absorb.
Importantly, the firm has declared that it will not be self-taking care of its assets. “highest-tier custody standards” Through third-party specialist.
Jiuzi Holdings, a Hangzhou-based electric vehicle infrastructure company with an extensive network of smart chargers in China’s small cities, is not just a tech startup. The company’s model is based on building energy storage and fast charging stations to achieve carbon neutrality.
The company has joined a growing group of companies that are incorporating digital assets into their balance sheets. This trend extends far beyond the technology sector.
This cohort has just grown by one more member. Iveda, a company based in Arizona made the announcement on the same day as Jiuzi. revealed Its board has also authorized the use of cryptocurrency in its corporate treasury.
Iveda, like Jiuzi, framed its move as a forward-looking investment rather than a bet on speculation. Both announcements show how different companies, from various industries and geographical locations are coming to the same conclusion. Digital assets have become a part of corporate treasury tools.
Risks
These companies are ambitious and they want to be exposed. Jeff Gapusan, a fintech analyst noted recently Forbes pieceThe rise of digital assets treasury firms is a development with a dual-edged effect. The model is a risky one, he said. While regulatory clarity and institution adoption drive interest in the model, it also has risks related to market cycles.
Balance sheets can be vulnerable when the sentiment changes, as a result of the reflexive loop rewarding firms during bull markets. In addition to price volatility, firms must also deal with ongoing costs tied to risk management, custody and compliance.
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Source: crypto.news
