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HANGZHOU, China - Jiuzi Holdings, Inc. (NASDAQ:JZXN), a small-cap company with a market capitalization of $31.93 million and trailing twelve-month revenue of $1.4 million, has announced a strategic initiative to acquire 1,000 Bitcoins within the next year. The acquisition will be funded through a mix of additional stock issuance and cash purchases. This decision is part of JZXN’s broader commitment to investing in digital currencies and blockchain technology. According to InvestingPro analysis, the stock has shown significant price volatility, with a notable 116% surge over the past six months.
The company’s Board of Directors has approved the Bitcoin acquisition plan after extensive evaluation. JZXN cites Bitcoin’s liquidity, market recognition, and potential for value increase as reasons for the investment. The inclusion of Bitcoin in JZXN’s asset portfolio is intended to diversify investment risk and potentially yield long-term benefits.
To facilitate the acquisition, JZXN will issue additional shares at an appropriate time to raise funds, while also using internal resources and potential external financing. This dual-track approach is designed to protect shareholder interests and ensure sufficient acquisition funding. InvestingPro data reveals the company maintains a strong current ratio of 4.83, indicating sufficient liquid assets to meet short-term obligations, though it’s worth noting the company is currently burning through cash rapidly.
JZXN’s CEO expressed confidence in the decision, acknowledging Bitcoin’s market volatility but emphasizing a deep understanding of blockchain technology and a long-term optimistic outlook. The acquisition aims to enrich the company’s asset structure, enhance profitability, and bolster its risk resistance. Moreover, JZXN plans to continue exploring blockchain applications in various fields.
This move by JZXN reflects a growing trend among companies to integrate cryptocurrencies into their investment strategies. The information is based on a press release statement.
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