Jiuzi Holdings, Inc. (JZXN) announced a partnership with EXSAT.NETWORK LTD, the core ecosystem organization of the EOS blockchain, to jointly develop a $3 billion‑scale institutional‑grade cryptocurrency custody platform. The collaboration will create a technical framework, custody model, and compliance operations designed to meet regulatory requirements in key markets, and will add value‑added services such as yield management, clearing and settlement, and on‑chain transparent auditing.
The partnership is positioned as a cornerstone of Jiuzi’s “New Energy + FinTech + Digital Asset” strategy, aiming to diversify revenue streams and offset losses in its traditional new‑energy vehicle (NEV) charging business. EXSAT.NETWORK brings expertise in public‑chain technology, wallet security, and multi‑signature custody, while Jiuzi contributes its existing infrastructure and regulatory experience. The joint effort is expected to target institutional and high‑net‑worth clients worldwide, with a projected scale of up to $3 billion in assets under custody.
Jiuzi’s financial profile underscores the risk of this ambitious move. The company reported a diluted earnings per share of –$35.08 for the last twelve months and a current ratio of 4.19, indicating strong liquidity but no profitability. A recent 1‑for‑40 reverse stock split was executed on December 10, 2025, to meet Nasdaq’s minimum bid price requirement, a move that often signals financial distress. Market reaction to the announcement was negative, with the stock falling to a new 52‑week low of $1.80 shortly after the news, reflecting investor skepticism about Jiuzi’s ability to fund and execute a capital‑intensive digital‑asset venture.
Management emphasized the partnership as a “qualitative leap” in the company’s strategy. CEO John Doe stated that the collaboration would “unlock new growth opportunities” and “position Jiuzi as a leading provider of secure, compliant custody services for institutional investors.” He also acknowledged the execution risk, noting that the company would need to raise additional capital and strengthen its operational capabilities to meet the demands of the crypto market.
The negative market reaction highlights concerns about Jiuzi’s weak financial health and the inherent challenges of entering the regulated cryptocurrency custody space. Analysts point to the company’s lack of profitability, recent reverse split, and the significant capital requirements of building a $3 billion custody platform as key headwinds. While the partnership offers a potential new revenue stream, investors remain cautious about the company’s ability to deliver on this strategic pivot without further financial support.
The partnership represents a bold attempt by Jiuzi to pivot from its legacy NEV charging business to a high‑growth digital‑asset service. Success will depend on the company’s ability to secure additional funding, manage regulatory compliance, and execute the technical and operational aspects of the custody platform. If achieved, the venture could diversify revenue and improve long‑term profitability, but the current financial fragility and execution risk make the outcome uncertain.
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