Zhibao Technology is considering adding around $220 million worth of Bitcoin to its company holdings – about 3,500 coins. They’ve reached a preliminary agreement to do this by selling shares and accepting payment in Bitcoin.
Summary
- Zhibao has signed a non binding agreement to receive about 3,500 Bitcoin through a proposed $220 million stock sale.
- The proposed deal would give the investor majority control of Zhibao’s board while establishing a Bitcoin treasury if completed.
- The announcement comes as public companies continue adopting different strategies to build or manage Bitcoin reserves.
Zhibao Technology, a digital insurance company based in Shanghai and listed on Nasdaq, announced Wednesday that it’s exploring a deal with Joyertech and Information OPC. The potential agreement involves receiving investment through roughly 3,500 Bitcoin instead of traditional cash – a type of financing called a private investment in public equity (PIPE). It’s important to note this is currently just an initial agreement and not a final commitment.
If finalized, the buyer (or a related company) will purchase new securities. The exact value of the Bitcoin involved is still being determined and depends on things like secure storage setup, an independent audit, legal approval, meeting Nasdaq requirements, and signing official contracts.
This deal isn’t just about Joyertech buying Bitcoin. The agreement allows Joyertech to appoint most of Zhibao’s board members once the funding is complete, essentially giving them control of the company. Zhibao will continue to run its insurance operations as usual during this transition.
A PIPE financing lets private investors buy new shares directly from a company that’s already publicly traded, bypassing the usual stock market. In Zhibao’s case, they would be paying with Bitcoin instead of cash. If approved, this deal could quickly build up a significant amount of Bitcoin for the company.
I’ve been looking into ZBAO, a company listed on Nasdaq, and they’re basically building tech for insurance in China. They focus on what’s called ’embedded insurance,’ which means integrating insurance directly into other services. Back in 2020, they launched what they claim was the first digital insurance brokerage platform over there, all built on their own cloud-based system.
Bitcoin-funded treasury proposal reshapes ownership
Even after receiving funding, the insurance company will continue to run as usual, but the current leaders are only expected to manage things on a daily basis until the older parts of the business are sold, separated, or reorganized.
As an analyst, I’m seeing a really interesting approach here. Most companies looking to get into Bitcoin first raise capital and *then* buy it on exchanges. This company is doing things differently – they’re proposing to accept Bitcoin as direct payment for new stock. Essentially, the financing deal itself will build their Bitcoin holdings, immediately establishing a treasury rather than having to acquire it later.
Investors reacted quickly to the news. Zhibao’s stock price jumped from around $0.15 to almost $0.40 in just four hours, though it later dropped slightly and settled at about $0.24. Even with this decrease, the stock was still approximately 60% higher than its price before the announcement.
Just a week prior, on July 15th, Zhibao announced it received a warning from Nasdaq because its stock price had fallen below $1 per share – the minimum required for listing. The stock was trading at around $0.22 at the time. Zhibao now has until January 6, 2027, to bring its stock price back up and meet Nasdaq’s listing requirements.
Treasury strategies continue to diversify
The new proposal comes as more and more public companies explore adding Bitcoin to their holdings, but so far there’s no clear standard for how they’re doing it.
Instead of constantly selling stock to buy Bitcoin, some companies are now planning to use profits from their existing businesses. For example, ORANGE JUICE recently raised $40 million to buy successful American companies, and they expect the profits from these businesses to fund future Bitcoin purchases, as well as help them buy even more companies.
I’ve been watching Bitcoin Japan closely, and it’s interesting to see they’ve finally secured funding. They just raised about 9.66 billion yen, and they’re planning to use around 662 million yen to actually start buying Bitcoin. It’s good to see them get this done, especially since their last attempt to raise capital for digital assets didn’t quite pan out. It shows they’re still committed to building a Bitcoin treasury, and they’re relying on traditional fundraising to do it.
Capital B is strengthening its financial position before buying more Bitcoin. Shareholders recently approved a plan allowing the company to raise up to €5 billion through new stock and secure up to €100 billion in credit. This will fund future Bitcoin purchases as part of their overall financial planning.
In my research, I’ve found that not all treasury companies are jumping on the Bitcoin bandwagon. For example, Empery recently revealed they sold 1,400 Bitcoin – around $87.1 million worth – starting in May. They used this money to pay off debts, fund new acquisitions, cover legal costs, and generally improve their financial stability, while still holding onto a smaller amount of Bitcoin.
Over 150 public companies currently have Bitcoin listed as an asset on their financial statements. However, how they manage this Bitcoin is changing; each company is now tailoring its approach based on its specific financial situation, how it operates, and its overall financial goals, rather than following a standard plan.
However, for Zhibao, the deal isn’t final yet. According to company documents, the agreement isn’t legally binding and requires further checks – including legal, financial, and operational reviews. It also needs final agreements to be signed, official approvals secured, and Zhibao to remain in good standing with Nasdaq, among other standard requirements, before any Bitcoin is actually transferred.
2026-07-24 11:31