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Zhibao Technology has signed a non-binding agreement that could bring about 3,500 Bitcoin, valued at roughly $220 million, onto its balance sheet through a proposed stock sale paid in BTC.<\/p>\n
\n Summary<\/span>\n <\/p>\n <\/p>\n According to a Wednesday press release<\/a> from Nasdaq-listed Zhibao Technology, the Shanghai-based digital insurance company has entered into a non-binding term sheet with Joyertech and Information OPC for a proposed private investment in public equity (PIPE) financing that would be settled using approximately 3,500 Bitcoin instead of cash.<\/p>\n If completed, the buyer or its designated entity would subscribe to newly issued securities, with the Bitcoin amount remaining subject to final valuation, custodial arrangements, audit verification, regulatory review, Nasdaq compliance and the execution of definitive agreements.<\/p>\n The proposed transaction would do more than add Bitcoin to the company\u2019s balance sheet. Under the term sheet, Joyertech is expected to nominate a majority of Zhibao\u2019s board members when the financing closes, giving the investor effective control of the company while Zhibao continues operating its existing insurance business during the initial transition period.<\/p>\n A PIPE financing allows private investors to purchase newly issued shares directly from a publicly listed company instead of acquiring stock through public markets. In this case, the consideration would be Bitcoin rather than cash, allowing Zhibao to establish a sizeable Bitcoin treasury immediately if the transaction receives final approval.<\/p>\n The company, which trades on Nasdaq under the ticker ZBAO, describes itself as a digital insurance technology provider focused on China\u2019s embedded insurance market. It launched what it describes as the country\u2019s first digital insurance brokerage platform in 2020 using its own cloud-based platform-as-a-service infrastructure.<\/p>\n While the insurance business would continue operating after the financing, company disclosures indicate the current management team is expected to oversee day-to-day operations only until a future separation, disposal or restructuring of the legacy business is completed.<\/p>\n <\/p>\n The structure differs from the path followed by many public companies that first raise cash before purchasing Bitcoin in the open market. Instead, the proposed financing would transfer Bitcoin directly to the company as payment for newly issued shares, allowing the treasury to be established as part of the financing itself.<\/p>\n Investor reaction was immediate after the announcement. Zhibao shares climbed from about $0.15 to nearly $0.40 within four hours before giving back part of the gains and stabilizing near $0.24 later in the session. Even after the pullback, the stock remained roughly 60% above its pre-announcement level.<\/p>\n Only a week earlier, on July 15, Zhibao disclosed that it had received a Nasdaq deficiency notice after its share price traded below the exchange\u2019s minimum $1 bid requirement. At the time, the stock was changing hands around $0.22. The company now has until Jan. 6, 2027, to regain compliance with Nasdaq\u2019s listing standards.<\/p>\n The proposal arrives as public companies continue experimenting with different ways to build Bitcoin reserves, although recent announcements show that no single treasury model has emerged.<\/p>\n Unlike companies that depend on repeated share offerings to fund Bitcoin purchases, some businesses are tying future accumulation to operating cash flow. Earlier this month, ORANGE JUICE announced it had raised $40 million<\/a> to acquire profitable American businesses, with surplus cash from those operations expected to finance future Bitcoin purchases alongside additional acquisitions.<\/p>\n Other firms continue to rely on capital markets. Earlier this month, Japan\u2019s Bitcoin Japan secured plans<\/a> to raise approximately 9.66 billion yen, allocating about 662 million yen for its first funded Bitcoin treasury purchase after a previous fundraising effort failed to provide enough capital for digital asset acquisitions.<\/p>\n Capital B has taken another route by expanding its financing capacity before making additional purchases. In June, shareholders approved a framework<\/a> authorizing up to \u20ac5 billion in capital increases and \u20ac100 billion in credit instruments to support future Bitcoin acquisitions as part of the French company\u2019s long-term treasury strategy.<\/p>\n\n\n
Bitcoin-funded treasury proposal reshapes ownership<\/h2>\n
Treasury strategies continue to diversify<\/h2>\n