Jiuzi Holdings Inc. (JZXN) is in talks to acquire roughly $1 billion of AI‑powered cryptocurrency tokens from an undisclosed Web3 technology firm. The tokens would be purchased at a discount of about 30% through a private placement of JZXN’s common stock, allowing the company to expand its digital‑asset treasury strategy and potentially realize substantial book gains if the tokens appreciate.
The deal is financed through JZXN’s recently expanded private‑placement program, which the company has broadened to a $1 billion limit. With a market capitalization of approximately $3.44 million and FY 2024 revenue of $1.4 million, the proposed acquisition is large relative to the company’s size and would result in significant dilution of existing shareholders. The private‑placement mechanism provides the necessary capital while preserving the company’s ability to pursue its new strategic direction.
This transaction marks a decisive shift for JZXN, which has historically focused on new‑energy‑vehicle charging infrastructure. By moving into the crypto and Web3 arena, the company is aligning itself with a broader industry trend that blends artificial intelligence with digital‑asset trading. The potential listing of the tokens on Binance could offer liquidity and market visibility, but the company has not yet disclosed the counterparty’s identity or the specific token type.
The announcement carries notable risks. The cryptocurrency market remains highly volatile and subject to regulatory uncertainty, and the company has not yet provided detailed terms of the private placement or the token’s characteristics. The large scale of the acquisition relative to JZXN’s financial resources raises concerns about the company’s ability to sustain the transaction without compromising its balance sheet. Management has not yet disclosed whether the tokens will be held long‑term or sold to realize gains.
Investor attention has intensified following the expansion of JZXN’s private‑placement financing. The company’s strategic pivot and the potential for substantial book gains have drawn scrutiny, but the success of the deal hinges on the performance of the acquired tokens and the company’s capacity to manage the associated dilution and market risks.
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