Israel’s Zooz Power launches $180M Bitcoin treasury, replaces CEO with crypto entrepreneur
Company’s sudden pivot from energy storage to digital assets shocks markets.
Zooz Power, a company previously focused on developing, manufacturing, and selling kinetic energy storage systems, has announced a dramatic pivot: the company will begin purchasing Bitcoin. The decision has triggered a sharp sell-off, with shares plunging 45% on Tuesday.
The company said it had secured a $180 million private investment in public equity (PIPE) deal from institutional investors. Participants in the PIPE include strategic Pantera Capital, FalconX, Arrington Capital, UTXO Management, ATW Partners and Israeli investor Alex Rabinovitch.
In effect, these investors have "ordered" $180 million worth of Zooz shares at $1 per share, though the deal is not guaranteed to close.
According to Zooz, 95% of the funds raised will be used to buy Bitcoin. The remaining 5% is presumably reserved for other operations. The company emphasized it will not abandon its core business and will continue operating in the energy storage sector.
Zooz Power, which trades on both the Tel Aviv and Nasdaq stock exchanges, would become the first dual-listed company to shift primarily into Bitcoin acquisition. As of Tuesday morning, prior to the announcement, the company held a market value of 144 million shekels (approximately $43M), having surged by 274% earlier this month. Following the Bitcoin announcement, its market cap fell sharply to approximately 80 million shekels ($24M).
Earlier, the company unveiled a cost-efficiency plan expected to cut operating expenses by 35%, and had explored expanding into the defense market. However, the sudden shift into cryptocurrency appears to have disappointed investors who expected a more conventional growth path.
In a leadership shake-up, CEO Erez Zimerman will be replaced by Jordan Fried, a digital currency entrepreneur and investor. Zimerman, who joined Zooz from a publicly traded printing technology firm, will remain at the company to lead its energy management systems and EV fast-charging operations.
“As ZOOZ evolves into a dual-listed Bitcoin treasury pioneer, U.S. and Israeli-based investors gain seamless access to our model,” said Jordan Fried, incoming Chief Executive Officer of Zooz. “The company intends to leverage every resource available to a dual-listed entity to scale its Bitcoin holdings, while signaling crypto-native and innovation-focused stakeholders that we are forward-thinking. We see our treasury evolving into a strategic asset that drives growth, stability, and differentiation.”
Zooz Power went public in March 2021. It was founded in 2013 by Unit 8200 alumni Ilan Ben David, David Pincu and Nir Zohar.
The decision to transition into Bitcoin will require shareholder approval.
