Chinese EV Maker Plans $1 Billion Bitcoin Swap: Why Analysts Are Skeptical

Hangzhou-based, Nasdaq-listed electric vehicle manufacturer Jiuzi Holdings (JZXN) has announced plans for a share swap agreement with an unnamed global digital asset investor to acquire 10,000 BTC, valued at approximately $1 billion. The deal involves no cash flow; Jiuzi Holdings will receive Bitcoin assets, while the counterparty will receive shares of equivalent value.

According to the announcement, the two parties will also establish a long-term strategic partnership covering cross-border crypto settlements, liquidity management, and ecosystem collaboration. Jiuzi emphasized that the acquired Bitcoin will be held by a third-party licensed custodian rather than self-managed, a move seen as prudent by the industry and reflecting the company's emphasis on compliance risks.

However, the market has questioned the rationale behind the deal. As a small car company with a market capitalization consistently far below $1 billion, Jiuzi Holdings issuing $1 billion worth of shares at the current stock price would mean significant dilution for existing shareholders, or a significant overvaluation of the company following the announcement. As of now, the capital market has not reacted to this valuation change, and relevant details have not been disclosed in official SEC filings. The transaction is still in the agreement signing stage and is subject to considerable uncertainty. Notably, this is not Jiuzi's first foray into the crypto space. In late 2025, the company announced a partnership with the SOLV Foundation, planning to invest up to $1 billion in yield-bearing Bitcoin products such as the SolvBTC.BNB vault. The company also appointed former blockchain expert Dr. Doug Buerger as Chief Operating Officer and established a crypto asset risk committee led by CFO Gao Huijie, demonstrating a systematic approach to its digital asset strategy. Despite the company's claim that this move is intended to create an institutional-grade digital finance portal, the successive asset allocations of "$1 billion" coupled with a lack of transparent valuation basis have raised concerns about the company's true motives and financial sustainability. The market generally believes that such operations are more of a symbolic statement than a strategic transformation based on sound financial logic.