Zhibao Technology, a digital insurance company based in Shanghai and listed on Nasdaq, intends to raise roughly $220 million in a private investment by selling shares in exchange for about 3,500 Bitcoin. The deal would give the buyer majority control over the board, signaling a major strategic shift just weeks after the company received a Nasdaq warning over low share prices.
- Zhibao plans to raise $220 million in Bitcoin via private equity sale
- Buyer Joyertech to gain majority board control post-transaction
- Shares rose sharply after announcement despite Nasdaq price warning
What happened
Zhibao Technology, a Nasdaq-listed company specializing in digital insurance products in China, disclosed a non-binding term sheet to execute a $220 million private investment in public equity (PIPE) financing. Instead of cash, the buyer, Joyertech and Information OPC, will pay with approximately 3,500 Bitcoin at prevailing market prices. This transaction marks a distinctive approach of accepting cryptocurrency directly as consideration.
According to the term sheet, Joyertech will designate most of the board members immediately upon closing, effectively taking control of Zhibao. The firm also confirmed the current management team will continue operating the existing digital insurance business temporarily until future restructuring, disposition, or separation decisions are finalized by the new owners.
Why it matters
This deal illustrates a growing trend within publicly traded firms that integrate significant Bitcoin holdings directly on their balance sheets through PIPE financings, rather than acquiring the cryptocurrency post-fundraising. Zhibao joins over 150 global companies leveraging Bitcoin as a treasury asset, reflecting ongoing interest despite recent cryptocurrency market volatility and regulatory scrutiny.
What to watch next
Additionally, how Joyertech implements its board control and future strategic decisions regarding the insurance business and Bitcoin treasury will shape Zhibao's trajectory. The broader implications for other Chinese and global InsurTech firms considering crypto treasury integrations also warrant close attention, especially amid shifting regulatory environments.