ZOOZ's Radical Pivot: From Flywheels to a Bitcoin-Fueled Future

TEL AVIV, Israel – January 20, 2026 – ZOOZ Strategy Ltd. (Nasdaq and TASE: ZOOZ) has signaled a dramatic corporate reinvention, revealing preliminary 2025 financial results that showcase a company shedding its debt, amassing a significant cash reserve, and making a massive bet on Bitcoin as its primary treasury asset. The moves cement a strategic pivot away from its origins in kinetic energy storage and toward a future intertwined with the volatile world of cryptocurrency.

In a corporate update released today, the dual-listed company announced its cash position had swelled to approximately $27.1 million by the end of 2025, a stark increase from $7.5 million a year prior. This financial fortification, driven by private placements completed last year, has enabled ZOOZ to completely eliminate its outstanding promissory notes, which totaled over $3 million. The company now stands virtually debt-free, a clean slate as it embarks on its ambitious new chapter.

A Financial Overhaul to Fund a Crypto Ambition

ZOOZ's bolstered balance sheet is the direct result of a concerted effort to recapitalize the company. The significant cash injection came from private placements in July and September 2025. This newfound liquidity was immediately put to use, with ZOOZ fully repaying promissory notes held by Keyarch Acquisition Corporation and EarlyBirdCapital, Inc. As of December 31, 2025, the company's only outstanding liabilities consist of approximately $1.3 million in ordinary course accounts payable.

Fueling this transformation is an aggressive "at the market" (ATM) offering program. An initial agreement with Chardan Capital Markets was expanded in September 2025 to include Jett Capital Advisors, increasing the potential aggregate offering of ordinary shares to an eye-watering $1 billion. While only a fraction of this has been utilized so far—raising approximately $4 million in gross proceeds by year-end—the facility provides a massive runway to fund its new strategic direction.

However, the company was careful to note the preliminary nature of these figures. The financial results are unaudited and unreviewed, with the official audited statements not expected until March 2026. ZOOZ cautioned that final figures could vary due to audit adjustments and other developments, a standard but important disclaimer for investors digesting the scale of the company's transformation.

The Billion-Dollar Bitcoin Bet

The centerpiece of ZOOZ's new identity is its aggressive adoption of a Bitcoin treasury strategy. Since initiating the policy in July 2025, the company has purchased a total of 1,046 Bitcoin for approximately $121.9 million. The average purchase price of $112,745 per Bitcoin underscores the company's commitment, even at price levels that reflect the asset's significant volatility. ZOOZ confirmed it held all purchased Bitcoin as of the end of the year.

This move places ZOOZ among a small but growing cohort of public companies, most notably MicroStrategy, that use Bitcoin as a primary reserve asset. The strategy is designed to offer shareholders "asymmetric, long-term exposure to Bitcoin," potentially acting as a hedge against inflation and currency devaluation. Proponents view it as a forward-thinking approach to capital allocation, leveraging Bitcoin's potential as "digital gold."

However, the strategy is fraught with risk. Bitcoin's price is notoriously volatile, and holding such a large, unhedged position can lead to dramatic swings in the company's balance sheet and stock value. Regulatory landscapes for digital assets remain a patchwork of evolving rules, posing further uncertainty. ZOOZ itself acknowledges these risks in its filings, noting its share price may become highly correlated with Bitcoin's price fluctuations. The success of this bet hinges entirely on Bitcoin's long-term performance and the company's ability to navigate the turbulent crypto market.

A Fork in the Road for Flywheel Technology

The pivot to a Bitcoin-centric holding company marks a significant departure from ZOOZ's technological roots. The company, formerly known as ZOOZ Power, was a pioneer in flywheel-based kinetic energy storage systems, with its ZOOZTER™-100 units designed to enable ultra-fast electric vehicle charging by stabilizing power grids.

Reflecting the strategic shift, ZOOZ reported it "did not sell additional ZOOZTER™-100 systems during the second half of 2025." This follows a company-wide cost reduction and restructuring initiative announced last June to "explore additional strategic alternatives" for its patented technology.

Yet, the flywheel technology is not being entirely abandoned. ZOOZ revealed it is in "ongoing discussions with a prominent defense and intelligence electronics company" for a potential application of its power-boosting technology in challenging environments. This suggests a potential new life for the core innovation in the lucrative defense sector, a vertical far removed from its previous focus on public EV infrastructure. The outcome of a proof-of-concept trial currently underway could determine the ultimate fate of this legacy technology.

Simultaneously, the company is actively looking to build out its new crypto-focused structure. ZOOZ stated it is "considering adding a tangential, cash-flowing businesses within the Bitcoin ecosystem." While specifics were not provided, such synergistic ventures could range from crypto financial services to infrastructure plays, aimed at generating operating cash flow to "further fuel its ability to acquire and hold strategic assets" like Bitcoin.

This dual path—exploring a high-value niche for its old tech while building a new business around digital assets—highlights a company in deep transition. This evolution was also reflected in its governance, with the announcement that two board members, Dr. Samer Haj-Yehia and Mr. Fang Zheng, would step down for personal reasons, leading the board to reduce its size from eight to six members.

Analyst sentiment remains mixed, with a consensus 'Hold' rating reflecting the uncertainty of this bold strategy. While Chardan Capital recently initiated coverage with a 'Buy' rating, the stock's high volatility is a recurring theme. For investors, ZOOZ now represents a unique, high-stakes proposition: a technology company reinventing itself as a proxy for Bitcoin, backed by a clean balance sheet but facing all the inherent risks of the digital frontier.