Kaixin Holdings Establishes Digital Asset Management Department and Launches Digital Asset Allocation Strategy

Rhea-AI Summary

Kaixin Holdings (NASDAQ: KXIN) announced on October 6, 2025 the establishment of a Digital Asset Management Department to raise funds to acquire cryptocurrencies such as Bitcoin and Ethereum and execute a digital asset allocation strategy aimed at diversifying traditional business risks and targeting long-term returns.

The company said it may seek new strategic investors and Web3 projects to optimize its equity structure. As of October 6, 2025, Kaixin has 27,258,228 ordinary shares outstanding (22,158,228 Class A; 5,100,000 Class B). Kaixin also reiterated its transition toward an AI-driven education business through XINGCAN. The announcement includes standard forward-looking risk disclosures regarding market, regulatory, and operational uncertainties.

Positive

• Digital Asset Management Dept established on 10/06/2025
• Company commits to acquire Bitcoin and Ethereum under new allocation strategy
• 27,258,228 shares outstanding reported as of 10/06/2025

Negative

• Plan exposes Kaixin to regulatory and market volatility in digital assets
• Company may introduce strategic investors or acquisitions that could alter equity structure

Insights

Strategic Finance Analyst

Kaixin forms a Digital Asset Management Department to hold cryptocurrencies and pursue Web3 strategic investments as of Oct 6, 2025.

Kaixin Holdings establishes a dedicated digital asset unit to raise funds and acquire cryptocurrencies such as Bitcoin and Ethereum, aiming to diversify its balance sheet and pursue long‑term returns while exploring strategic investors and Web3 projects. The company discloses its issued share count of 27,258,228 ordinary shares, split into 22,158,228 Class A and 5,100,000 Class B, which frames potential dilution or ownership implications for any equity transactions tied to this strategy.

The business mechanism links corporate treasury allocation to crypto market exposure and future M&A or strategic investor introductions in Web3, which could change the company’s risk profile and capital deployment. Key dependencies include successful fundraising, clear governance for digital assets, and execution on any announced acquisitions; regulatory or operational constraints are noted as forward‑looking risks in the statement. Watch for concrete fundraise terms, governance controls for custody and risk limits, any acquisitions or investor transactions, and quarterly disclosures over the next 12–18 months to assess realized impact.

BEIJING, Oct. 06, 2025 (GLOBE NEWSWIRE) -- Kaixin Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced that the Company has established its Digital Asset Management Department, which commits to raise funds to acquire cryptocurrencies such as Bitcoin and Ethereum and implement an effective digital asset allocation strategy to generate value for Kaixin. The digital asset allocation strategy will not only effectively diversify traditional business risks but also leverage the unique properties of the crypto asset market to generate potential long-term returns for the Company and achieve diversified asset value.

As the global economy becomes increasingly complex and volatile, traditional investments face more uncertainties. However, with the development of blockchain technology and the maturity of the global digital asset market, the acceptance of cryptocurrencies such as Bitcoin and Ethereum among investment institutions and financial technology companies has continued to increase, and their market value has also shown growth potential amid long-term fluctuations. The flexibility of their trading mechanisms allows them to quickly respond to market changes, providing an efficient adjustment channel for corporate asset allocation.

The Company is exploring opportunities to introduce new strategic investors and acquire high-value projects in the Web3 industry in the future, aiming to optimize its equity structure and business system, and demonstrate its innovative thinking in asset allocation. It is hoped that this move will provide a more positive impetus to the Company's long-term development and help create greater shareholder value.

As of October 6, 2025, the Company has a total of 27,258,228 ordinary shares issued and outstanding, including 22,158,228 Class A ordinary shares and 5,100,000 Class B ordinary shares.

About Kaixin Holdings

Kaixin Holdings is committed to transitioning into an AI-driven tech business located in China. XINGCAN utilizes AI technologies to develop and operate online live streaming education platforms and packages, serving both domestic and international audiences. Through the proposed acquisition, Kaixin enters the AI education business and aims to expand its AI capacity into new areas to create more growth opportunities.

Safe Harbor Statement

This announcement may contain forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" or other similar expressions. Statements that are not historical facts, including statements about Kaixin’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with auto dealerships; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our other documents filed with the SEC. All information provided in this announcement and in the attachments is as of the date of this announcement, and Kaixin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Kaixin Holdings
Investor Relations
Email: ir@kaixin.com

FAQ

What did Kaixin (KXIN) announce on October 6, 2025?

Kaixin announced a new Digital Asset Management Department and plans to raise funds to acquire Bitcoin and Ethereum.

Will Kaixin (KXIN) buy Bitcoin and Ethereum immediately?

The company committed to raise funds to acquire Bitcoin and Ethereum as part of its digital asset allocation strategy; no purchase amounts or timelines were disclosed.

How many shares does Kaixin (KXIN) have outstanding as of October 6, 2025?

Kaixin reported 27,258,228 ordinary shares outstanding on October 6, 2025 (22,158,228 Class A; 5,100,000 Class B).

How could Kaixin's digital asset strategy affect KXIN shareholders?

The company said the strategy aims to diversify risk and seek long-term returns but warned of market and regulatory risks tied to cryptocurrencies.

Is Kaixin (KXIN) planning equity changes related to the digital asset move?

Kaixin said it is exploring introducing new strategic investors and Web3 project acquisitions to optimize its equity structure; details were not provided.

How does the announcement relate to Kaixin's business direction?

Kaixin is transitioning toward an AI-driven education business (XINGCAN) while adding a digital asset allocation strategy to its asset mix.