Chijet Motor Company announced that its digital‑asset treasury holdings have exceeded $400 million in value after acquiring 100 million tokens as part of a broader strategic initiative to diversify its balance sheet and pursue growth in the blockchain ecosystem.
The company has not disclosed the exact mix of cryptocurrencies, but the holdings are described as a mix of major digital assets that the firm believes will provide long‑term value and liquidity. The move is intended to offset the company’s declining automotive revenue and negative profitability, which have driven a 32.7% drop in revenue over the past three years and a negative EPS of –$640.
CEO Melissa Chen said the milestone “represents an important step in our diversification strategy and demonstrates our commitment to building long‑term shareholder value through disciplined digital‑asset investments.” She added that the company will continue to expand its holdings in a disciplined manner while maintaining its legacy automotive operations.
The announcement generated a brief positive reaction in market sentiment, but overall investor sentiment remained cautious because the company’s core automotive business continues to underperform and it carries substantial debt and negative equity. Analysts have expressed concerns about the sustainability of the company’s financial position and the effectiveness of its pivot to digital assets.
Chijet’s shift to digital assets reflects a broader trend of traditional manufacturers exploring alternative revenue streams, but the company’s financial distress and the high volatility of crypto markets pose significant risks. The long‑term success of this strategy will depend on the firm’s ability to generate consistent returns from its digital‑asset portfolio while managing the ongoing challenges of its automotive operations.
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