Zhibao Announces Plan to Accept Bitcoin in $220M Stock Sale
Nasdaq-listed Zhibao Technology Inc. (ticker: ZBAO) has signed a non-binding term sheet for a proposed private investment in public equity (PIPE) financing worth approximately $220 million, with the buyer agreeing to pay roughly 3,500 Bitcoin instead of cash. The transaction would see Joyertech and Information OPC take control by appointing a majority on Zhibao's board at closing. Zhibao operates as an InsurTech firm in China offering digital insurance products through its platform-as-a-service model. Just days before the announcement, it received a Nasdaq deficiency notice for trading below $1 per share; however, the stock surged over 200% immediately after the news was released. This move aligns with an emerging trend among public companies to build Bitcoin treasuries directly through equity deals rather than purchasing on open markets. While this strategy has led to initial gains in some cases, it also carries risks as seen recently when another company decided to liquidate its BTC holdings and shut down operations.
Topics: Bitcoin InsurTech PIPE deal stock financing