JZXN to acquire 23.5 bitcoins as part of new digital asset strategy

HANGZHOU, China - JZXN Holdings, Inc. (NASDAQ:JZXN), a small-cap company with a market value of $36 million and remarkable YTD gains of 134%, announced Wednesday that its board has approved a convertible note issuance to fund the purchase of 23.5 bitcoins, marking the first step in its "Thousand Coins Plan" unveiled last month. InvestingPro data shows the stock has demonstrated significant volatility, with multiple financial health indicators worth monitoring.

The acquisition represents the initial phase of the company’s digital asset strategy announced on May 22. According to the company, investors and investment conditions have been finalized, with the transaction expected to be completed soon. While the company maintains a healthy current ratio of 4.83, InvestingPro analysis indicates the company has been quickly burning through cash, a crucial factor for investors to consider.

"We fully recognize the volatility and uncertainty of the Bitcoin market," said Li Tao, CEO of JZXN. "However, it is precisely based on our in-depth understanding of blockchain technology and long-term confidence in its potential that we have decided to take this step."

The company stated that the funds raised through the convertible notes will be used exclusively for Bitcoin purchases. JZXN plans to execute its Bitcoin asset allocation progressively as part of its broader strategy to eventually acquire 1,000 bitcoins.

In its press release, JZXN cited Bitcoin’s decentralized architecture, transparency, and security as factors in its decision to diversify assets into cryptocurrency. The company indicated it would comply with relevant regulations regarding the deployment of raised capital.

This move represents JZXN’s U.S. subsidiary’s entry into digital assets. The company claims the initiative will help diversify its asset structure while potentially enhancing risk resilience and profitability. According to InvestingPro’s analysis, JZXN currently holds more cash than debt on its balance sheet, though its overall financial health score remains weak, with 16 additional ProTips available for subscribers.

In other recent news, Jiuzi Holdings has announced a strategic initiative to acquire 1,000 Bitcoins over the next year. This decision, approved by the company’s Board of Directors, will be financed through a combination of additional stock issuance and cash purchases. The company aims to diversify its investment risk and potentially benefit from long-term gains by integrating Bitcoin into its asset portfolio. Jiuzi Holdings plans to issue additional shares at a suitable time to raise funds while using internal resources and exploring external financing options. This approach is intended to protect shareholder interests and ensure sufficient funding for the Bitcoin acquisition. The CEO of Jiuzi Holdings expressed confidence in this decision, citing a deep understanding of blockchain technology and a positive long-term outlook. This move is part of a broader commitment by Jiuzi Holdings to invest in digital currencies and blockchain technology.

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