Chijet’s Cryptocurrency Gamble: Can It Rescue the Automaker During a Cash Crunch?
- Chijet Motor Company raised $300M via crypto private placement to expand digital asset custody infrastructure and strategic acquisitions. - Funds will be secured under regulatory standards, addressing liquidity risks as the company faces a 94% stock decline and 0.19 current ratio. - The deal, exempt from U.S. securities laws, follows prior $35M fundraisers but coincides with Nasdaq compliance warnings over bid price deficiencies. - CEO Melissa Chen highlighted investor confidence in Chijet's crypto pivot
Nasdaq-listed
Disclosed on October 27, 2025, this deal comes after a difficult stretch for the company, whose stock has dropped more than 94% in the last half-year and currently holds a ratio of 0.19, indicating liquidity challenges, according to
The private placement was carried out under exemptions from U.S. securities regulations, specifically Section 4(a)(2) and Regulation S of the Securities Act of 1933, according to the press release. This initiative is part of Chijet's broader financial approach, which has recently included $20 million and $15 million capital raises through private placements and registered direct offerings, as reported by Investing.com. Nonetheless, the company is facing regulatory challenges after receiving a Nasdaq warning for not maintaining the minimum $1.00 per share bid price for 30 straight trading days.
Chijet continues to focus on both traditional fuel vehicles and new energy vehicles (NEVs), with production sites in Jilin and Yantai, China, according to the press release. The company's move into digital asset custody highlights its strategy to diversify income sources amid the unpredictable automotive market. Experts point out that the growth of the crypto sector—driven by unprecedented inflows into
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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