Chijet bets $700M on crypto treasury pivot, ditching EV roots
What's the deal? Digital Currency X Technology, formerly Chijet Motor CompanyDealroom has a profile for this one. Try Dealroom →, has signed a securities purchase agreement for a $700 million private placement to fund its pivot into digital assets.
The Nasdaq-listed firm will sell Units priced at $2.11 each. Every Unit bundles one Class A ordinary share with three warrants, exercisable at $2.11 from June 24, 2026 for three years.
Buyers can pay in US dollars or agreed digital assets such as Bitcoin and Ethereum.
Why now? The raise marks DCX's shift away from legacy electric-vehicle manufacturing toward a digital-asset treasury and technology model.
Proceeds are earmarked for working capital and general corporate purposes, including expansion of its AI cloud computing services.
What could go wrong? Issuing new shares plus three warrants per Unit inflates DCX's outstanding and potential equity, diluting existing holders.
The three-year warrants at $2.11 could create an overhang of exercisable securities, weighing on the share price.
Tying corporate value to Bitcoin and Ethereum also exposes the treasury to crypto's notorious volatility.
The signal: DCX joins a growing roster of listed companies converting their balance sheets into crypto holdings, with its willingness to accept payment in Bitcoin and Ethereum showing how far the treasury-reserve trend has spread beyond pure-play crypto firms. Paired with a 12-for-1 share consolidation effective January 2026, the $700 million raise marks a striking reinvention for a company that once built cars — a wager that markets reward crypto exposure over manufacturing.
Read more: StockTitan
Image credit: orgalpari
