Jiuzi Holdings, Inc. (JZXN) announced a $40 million investment in crypto assets at a price of no less than $1.50 per share, a move that is part of the company’s Digital Asset Treasury (DAT) strategy and is expected to be completed within two weeks of the announcement.
The $40 million infusion is not intended to fund the company’s new energy vehicle (NEV) charging infrastructure. That expansion is being financed through a separate $30 million agreement with Xinhui Solar Technology Group, announced on January 30 2026.
Jiuzi’s financials underscore the urgency of the move. Over the past three years revenue has fallen 86.1%, operating margin has collapsed to a negative figure, and net margin is also negative. The company posted a $44.02 million loss on $97,465 of revenue in the most recent 12‑month period, and its share price has dropped 98.44% over the last 52 weeks.
The crypto investment represents a diversification strategy aimed at improving liquidity and potentially generating upside from digital‑asset markets. However, the company’s distressed fundamentals and the lack of a clear positive market reaction suggest that investors remain skeptical of the long‑term payoff.
While the $40 million will provide a liquidity cushion for strategic initiatives, the underlying business challenges—declining revenue, negative margins, and a weak balance sheet—remain significant risks that could limit the effectiveness of the new asset allocation.
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