Zhibao Technology Inc., a Nasdaq-listed Shanghai-based InsurTech company, signed a non-binding term sheet Wednesday for a private investment in public equity (PIPE) financing involving approximately 3,500 Bitcoin, worth roughly $220 million at current prices. The buyer, Joyertech and Information OPC, would pay for shares in Bitcoin and designate a majority of Zhibao's board of directors at closing, effectively taking control while current management continues day-to-day operations. Zhibao received a Nasdaq deficiency letter on July 15 for trading below $1 per share, and the company has until January 6, 2027, to regain compliance with the exchange's minimum bid price requirement.
Joyertech to Control Board Majority Under PIPE Financing Terms
Under the proposed deal structure, Joyertech and Information OPC would subscribe for securities in a PIPE financing with consideration expected to include approximately 3,500 Bitcoin, subject to final valuation, custodial arrangements, audit verification, regulatory review, Nasdaq compliance, and execution of definitive agreements. The term sheet specifies that the buyer is expected to designate a majority of the members of Zhibao's board of directors at the closing of the PIPE financing. Current management is expected to continue overseeing day-to-day operations of the legacy business until a later separation, disposition, or other restructuring occurs.
Zhibao describes itself as a leading high-growth InsurTech company and pioneer of the 2B2C digital embedded insurance model in China. The company launched what it calls the first digital insurance brokerage platform in the country in 2020, powered by its platform-as-a-service—a cloud-based system that other businesses use to offer insurance products to their customers.
Zhibao Stock Doubles After Bitcoin Treasury Announcement
Hours after the announcement, Zhibao's stock price (Nasdaq: ZBAO) rose from $0.15 to $0.40 in less than four hours, representing more than a 2X increase. The stock later settled around $0.24, reflecting a sharp correction but still representing approximately a 60% gain. Prior to the announcement, the stock was trading around $0.22.
One week before the Bitcoin treasury announcement, on July 15, Zhibao disclosed it had received a deficiency letter from Nasdaq for trading below $1 per share. The company has 180 calendar days—until January 6, 2027—to regain compliance with Nasdaq's minimum bid price requirement of $1 per share.
Bitcoin Treasury Trend Gains Traction Among Public Companies
The structure of Zhibao's proposed deal follows a pattern where companies take Bitcoin itself as payment for shares rather than raising cash and purchasing Bitcoin on the open market. This approach seats a treasury on the balance sheet from day one. More than 150 publicly traded companies now hold Bitcoin on their balance sheets.
The Bitcoin treasury trend has spread across Wall Street over the past two years, with firms large and small remaking themselves around BTC holdings. Companies like Strategy (formerly MicroStrategy) began this approach starting in 2020. However, outcomes have varied. While many publicly traded companies turned digital asset treasuries initially experienced sizable paper gains and skyrocketing stock prices following initial announcements, the hype around crypto treasuries faded as the bear market set in. Days ago, U.K.-based Satsuma Technology announced it would sell off its remaining Bitcoin, refund investors, and shutter operations.
Transaction Subject to Due Diligence and Regulatory Approvals
Zhibao's filing emphasizes that the term sheet is non-binding. The proposed transaction remains subject to completion of satisfactory legal, financial, and operational due diligence, negotiation and execution of definitive agreements, applicable corporate and regulatory approvals, compliance with Nasdaq listing requirements, and satisfaction of other customary closing conditions. The deal structure includes final valuation, custodial arrangements, audit verification, and regulatory review as prerequisites to closing.
FAQ
What did Zhibao Technology announce on Wednesday?
Zhibao Technology announced it signed a non-binding term sheet for a PIPE financing involving approximately 3,500 Bitcoin (worth roughly $220 million at current prices) from buyer Joyertech and Information OPC. The buyer would designate a majority of Zhibao's board of directors at closing.
Why did Zhibao receive a Nasdaq deficiency letter?
Zhibao received a Nasdaq deficiency letter on July 15 for trading below $1 per share. The company has until January 6, 2027, to regain compliance with Nasdaq's minimum bid price requirement.
How did Zhibao's stock price react to the Bitcoin treasury announcement?
Zhibao's stock price rose from $0.15 to $0.40 in less than four hours after the announcement, then settled around $0.24—representing approximately a 60% gain from pre-announcement levels.
