Nasdaq-listed Zhibao insurance-tech company plans to sell $220M in stock to build a Bitcoin treasury.
Macro & Markets ·
Zhibao Technology, a Shanghai-based insurance-tech company listed on Nasdaq, has signed a non-binding term sheet to receive approximately 3,500 Bitcoin—valued at roughly $220 million at current prices—as payment in a private equity financing round. The deal structure involves Joyertech and Information OPC purchasing shares directly from the company through what's called a PIPE, or private investment in public equity, with Bitcoin serving as the consideration rather than cash. The announcement comes just one week after Zhibao disclosed receiving a Nasdaq deficiency letter for trading below $1 per share, and the stock price initially surged more than 100% before settling at approximately 60% higher.
The arrangement carries significant control implications. According to the term sheet, Joyertech would designate a majority of the company's board of directors upon deal closing, effectively taking control of Zhibao. Current management is expected to continue overseeing day-to-day operations of the existing insurance business, though this arrangement appears temporary pending a later restructuring or disposition decision by the new owners.
Several conditions remain unresolved, including final Bitcoin valuation, custodial arrangements, audit verification, regulatory review, and Nasdaq compliance, all subject to execution of definitive agreements. The structure reflects a growing trend among public companies seeking to build Bitcoin treasuries by taking cryptocurrency directly as payment rather than raising cash and purchasing on the open market.