Zhibao Technology adds 2,380 Bitcoin in $154.7M treasury pivot

Zhibao Technology closed a $154.7 million private placement funded entirely in Bitcoin, receiving 2,380 BTC for its corporate treasury.

Director Botao Ma called the financing one of the most significant moments in the company's decade-long history, saying it strengthens Zhibao's financial base and supports its expansion into AI-driven insurance products.

The deal closed August 17, with a syndicate of non-U.S. investors delivering 2,380 BTC at a reference price of $65,000 per coin, pegged to market levels as of July 30. In exchange, investors including Metaverse Intelligence Tech Ltd and DYT Info Pte. Ltd. received 442 million units priced at $0.35 each, pairing one Class A ordinary share with a two-year warrant exercisable at the same price. Roughly 396 million units were delivered at closing, with the remainder pending shareholder approval.

The all-crypto funding structure sets Zhibao apart from the cash-raise-then-buy model used by most corporate Bitcoin holders. The company will retain the 2,380 BTC as treasury reserves for business growth, and plans to file a resale registration statement with the SEC within 45 days of the July 31 effective date.

A PIPE deal paid in Bitcoin

The transaction traces back to a non-binding term sheet dated July 22 that initially contemplated approximately 3,500 BTC. By the time the definitive Securities Purchase Agreement was signed on July 31, that figure had been trimmed to 2,380 BTC, with the deal using a reference price of $65,000 per Bitcoin pegged to market levels on July 30.

The structure — a Private Investment in Public Equity, or PIPE — lets public companies raise capital by selling securities directly to a select group of investors rather than through a public offering. What makes this deal unusual is that investors delivered Bitcoin directly as payment for equity, skipping the conventional sequence of raising cash and then purchasing BTC on the open market.

ZBAO surged more than 79 percent after the definitive agreement was announced. The company had previously received a Nasdaq compliance notice regarding its minimum bid price, and the stock jump would help on that front.

The Bitcoin transaction also brings significant governance changes. Zhibao's board will consist of five directors after closing, with four existing directors expected to resign and investors designating four new directors. Chairman Botao Ma is expected to remain. The company's CEO and CFO are also expected to step down, with incoming investors receiving the right to designate replacements.

The move adds Zhibao to a growing roster of public companies parking Bitcoin on their balance sheets. Japan's Metaplanet is seeding a U.S. treasury vehicle with 2,100 BTC worth roughly $132 million. Meanwhile, Strategy — the pioneer of the corporate Bitcoin treasury playbook — has halted its weekly Bitcoin buys and begun selling batches of its holdings to fund dividends and buybacks. Some newer entrants have started unwinding their positions entirely as the trade cools.

At a $65,000 reference price, Zhibao's 2,380 BTC position is worth $154.7 million, a figure that exceeds its market capitalization prior to the deal. The 442 million shares issued represent significant dilution for existing shareholders, though the 79 percent stock price jump suggests the market viewed the Bitcoin inflow as more than compensating for the equity expansion.

This article is for informational purposes only and does not constitute investment advice.