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Zhibao Technology, a Nasdaq-listed InsurTech company operating out of Shanghai, has closed a private placement funded entirely in Bitcoin, raising $154.7 million by issuing 442 million units to investors. The company says it will hold the 2,380 BTC it received as treasury reserves, joining a growing roster of public companies treating Bitcoin less like a speculative asset and more like a balance sheet staple.
The deal closed on August 17, with each unit priced at $0.35 and consisting of one Class A ordinary share plus a warrant exercisable at the same price over two years. The stock responded accordingly: ZBAO surged more than 79% after the definitive agreement was announced.
How the deal came together
The transaction traces back to a non-binding term sheet dated July 22, which initially contemplated approximately 3,500 BTC changing hands. By the time the definitive Securities Purchase Agreement was signed on July 31, that figure had been trimmed to 2,380 BTC.
The adjustment wasn’t arbitrary. The deal used a reference price of $65,000 per Bitcoin, pegged to market levels on July 30. At that valuation, 2,380 BTC works out to roughly $154.7 million, which matched the target raise.
The investors behind the capital aren’t household names. Entities including Metaverse Intelligence Tech Ltd and DYT Info Pte. Ltd. participated in the round, both non-US capital sources. The structure of the deal, a PIPE (Private Investment in Public Equity), is a well-worn mechanism in traditional finance that lets public companies raise money by selling securities directly to a select group of investors rather than going through a public offering.
Why Bitcoin, and why now
Zhibao completed its IPO on Nasdaq in April 2024, operating a PaaS-based digital insurance brokerage platform in China. The company has reported revenue growth in recent periods but has also faced net losses.
The timing carries additional context. Zhibao had previously received a Nasdaq compliance notice regarding its minimum bid price. A 79% price jump after announcing the Bitcoin deal would certainly help on that front.
Holding the Bitcoin rather than immediately liquidating it signals that Zhibao views BTC as more than just a funding mechanism. The company explicitly stated it will retain the 2,380 BTC in treasury for business growth, bringing its total Bitcoin holdings to that same figure. This wasn’t a company that already had a Bitcoin stash. The PIPE deal created the entire position from scratch.
The corporate Bitcoin treasury playbook
What distinguishes Zhibao’s approach is the funding mechanism itself. Most corporate Bitcoin treasury strategies involve a company using existing cash or proceeds from stock and debt offerings to purchase BTC on the open market. Zhibao skipped the intermediary step entirely: investors delivered Bitcoin directly as payment for equity.
The 442 million shares issued in this deal represent significant dilution for existing shareholders, though the 79% stock price jump suggests the market viewed the Bitcoin inflow as more than compensating for the equity expansion.
At a $65,000 reference price, Zhibao’s 2,380 BTC position is worth $154.7 million, a position that dwarfs its market capitalization prior to the deal.
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