Jiuzi Holdings, Inc. Company Secures Commitment to Expand Private Placement to $1 Billion Following Strong Investor Demand
Rhea-AI Summary
Jiuzi Holdings (Nasdaq: JZXN) announced on Dec 12, 2025 that it signed a Memorandum of Understanding with institutional investors to expand its private placement to up to US$1.0 billion. This replaces the prior US$12 million plan disclosed on Oct 7, 2025, representing an 80-fold increase in committed capital.
The company said the proceeds will support its strategic transformation into the crypto asset services sector, funding development of secure custody infrastructure, innovative storage solutions, and potential strategic acquisitions to grow its crypto asset business.
Positive
- Private placement expanded to US$1.0 billion
- Committed capital increased 80-fold from prior plan
- Proceeds earmarked for secure crypto custody infrastructure
- Financing supports pursuit of strategic acquisitions
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
JZXN fell 6.04% while peers were mixed: RMBL gained 38.96%, VRM rose 5.41%, and others like AZI declined 9.47%. This pattern points to a stock-specific reaction rather than a broad Auto & Truck Dealerships sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 08 | Reverse stock split | Negative | -19.4% | 1-for-40 reverse split to address Nasdaq minimum bid requirement. |
| Oct 30 | Crypto treasury move | Positive | +18.1% | Plan to allocate up to $1B into Bitcoin staking and yield products. |
| Oct 27 | Crypto partnership | Positive | -20.8% | Strategic cooperation with SOLV on Bitcoin treasury and cross-chain staking. |
| Oct 20 | BitFi partnership | Positive | +4.1% | Strategic partnership with BitFi to access BTC-focused DeFi and TVL. |
| Oct 13 | Crypto private placement | Positive | +5.3% | 100 Bitcoin private placement to fund digital-asset custody platform. |
JZXN usually moves in the direction implied by news sentiment, with four of the last five events showing aligned price reactions; the notable exception was a crypto partnership that drew a sharp negative move.
Over the last six months, JZXN has pivoted aggressively into crypto-related strategies and undertaken significant capital and share-structure actions. Crypto treasury and partnership announcements with SOLV and BitFi around October 2025 triggered volatile but mostly positive or mixed reactions. A 1-for-40 reverse split effective Dec 10, 2025 preceded a sharp -19.44% move. Today’s large private placement commitment continues the shift toward crypto asset services and builds on the October crypto-financing initiatives.
Regulatory & Risk Context
An effective Form F-3 shelf filed on 2025-11-03 registers up to 18,440,000 warrant-linked shares for resale by existing holders. The company itself only receives cash if warrants are exercised at $0.3799 per share, with any proceeds earmarked 70% for crypto asset purchases and 30% for working capital, and exercises constrained by a 4.99% beneficial ownership cap.
Market Pulse Summary
This announcement details a planned expansion of JZXN’s private placement capacity to up to US$1 billion, far above the prior US$12 million plan, to fund crypto asset custody and related services. In context of recent crypto partnerships, treasury initiatives, and a substantial reverse split, investors may focus on execution in the new crypto business, the pace and terms of any actual capital raises, and the impact of warrant-linked shares already registered on the F-3 shelf.
Key Terms
private placement financial
memorandum of understanding regulatory
AI-generated analysis. Not financial advice.
This expanded private placement represents an 80-fold increase in committed capital. The funds will be used to support the development of the Company's crypto asset business, including building advanced secure custody infrastructure and innovative storage solutions. This strategic transformation enables Jiuzi to capitalize on opportunities presented by the rapidly growing market demand for crypto asset services.
Mr. Tao Li, CEO of Jiuzi, stated, "The strong trust placed by investors validates our strategic vision and execution capabilities. This substantial additional capital provides us with significant financial flexibility to build secure crypto asset custody infrastructure and pursue strategic acquisition opportunities within the rapidly evolving crypto asset storage ecosystem."
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the
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SOURCE Jiuzi Holdings, Inc