Nasdaq-Listed Zhibao Plans $220M Stock Sale Payable in Bitcoin
In brief
- Zhibao Technology (ZBAO) announced a PIPE financing where buyer Joyertech pays $220 million in Bitcoin instead of cash.
- The deal transfers board control to Joyertech and adds approximately 3,500 Bitcoin to Zhibao's balance sheet.
- Announcement followed Nasdaq's $1 trading floor warning, causing stock price surge from $0.15 to $0.40.
- Transaction remains subject to due diligence, regulatory approval, and Nasdaq compliance before closing.
The Deal Structure
Zhibao Technology Inc. announced a PIPE financing where the buyer, Joyertech and Information OPC, would pay for shares in Bitcoin rather than cash. Under the term sheet, Joyertech would designate a majority of the board of directors at closing, effectively taking control of the company.
Zhibao trades as ZBAO on the Nasdaq and describes itself as a leading high-growth InsurTech company focused on China's embedded insurance market. The company launched what it calls the first digital insurance brokerage platform in China in 2020, powered by its own cloud-based system.
The timing is notable. Just one week before this announcement, on July 15, Zhibao received a deficiency letter from Nasdaq for trading below $1 per share, with stock hovering around $0.22. Hours after the deal announcement, the stock price skyrocketed from $0.15 to $0.40, more than 2X in less than four hours, before settling around $0.24.
What Happens Next
The current management team is expected to continue overseeing day-to-day operations of the legacy business until a later separation, disposition, or other restructuring takes place. But this isn't a done deal yet. The proposed transaction remains subject to completion of legal, financial, and operational due diligence, negotiation of definitive agreements, regulatory approvals, and Nasdaq compliance.
Zhibao's move follows a broader trend. More than 150 publicly traded companies now hold Bitcoin on their balance sheets. Not all Bitcoin treasury strategies work out—the U.K.-based Satsuma Technology announced it would sell off its remaining Bitcoin, refund investors, and shutter operations—but the appetite among listed companies to hold crypto remains strong.
