All-Crypto Financing Structure

Zhibao Technology, a Shanghai-based insurance technology firm listed on Nasdaq under the ticker ZBAO, has completed a $154.7 million private investment in public equity transaction paid entirely in Bitcoin. A syndicate of non-U.S. investors transferred 2,380 BTC directly into a company wallet. The contribution was valued using a reference price of $65,000 per Bitcoin, aligned with market levels as of July 30.

In return, the investors obtained 442 million units priced at $0.35 each. Every unit consists of one Class A ordinary share paired with a warrant exercisable over two years. Approximately 396 million units were issued at closing, with the balance of roughly 46 million units contingent on shareholder approval to increase the authorized share count. No additional payment is required for the remaining units.

The company reported the closing in a Form 6-K filing. Chief Executive Jinmei Guo Hellstroem signed the document. This structure differs from the more common approach among public companies that raise cash and later convert proceeds into digital assets.

Company Background and Leadership Perspective

Zhibao positions itself as a leader in embedded digital insurance solutions in China. It operates a 2B2C model and launched what it describes as the country’s first digital insurance brokerage platform in 2020. The firm has pursued AI-powered product development as part of its core strategy.

Director Botao Ma stated that the financing strengthens the firm’s financial foundation and supports expansion of its AI-driven insurance offerings. He noted that the investors’ expertise in cryptocurrency markets and infrastructure is expected to create additional growth opportunities. The company framed the transaction as a milestone rather than a shift away from its insurance technology focus.

Earlier Proposal and Final Terms

In late July, Zhibao had announced a non-binding term sheet involving a larger potential subscription of about 3,500 Bitcoin, valued near $220 million at the time. That earlier outline contemplated participation by specific counterparties and potential changes in board composition following closing. The completed transaction was smaller in scale and did not include the board-control elements described in the preliminary term sheet. Investor identities in the final syndicate were not disclosed.

Nasdaq Compliance Context

Zhibao’s shares had traded below $1 for an extended period earlier in the year. Nasdaq issued a minimum bid-price deficiency notice on July 15. The company has until January 6, 2027, to regain compliance. Prior SEC filings had noted substantial doubt about the firm’s ability to continue as a going concern, citing accumulated deficits and ongoing cash outflows. At points during the summer, the firm’s market capitalization stood in the range of $12 million to $15 million, meaning the Bitcoin received represented a multiple of the then-prevailing equity value.

Regulatory Follow-Up and Broader Context

Zhibao intends to file a resale registration statement with the U.S. Securities and Exchange Commission within 45 days of the July 31 effective date. The filing will cover the shares and warrants issued in the private placement.

The transaction places Zhibao among a growing group of public companies that hold Bitcoin on their balance sheets. Japan’s Metaplanet has allocated 2,100 BTC, valued at approximately $132 million, toward a U.S. treasury vehicle. Strategy, an early adopter of the corporate Bitcoin treasury approach, has suspended regular purchases, sold portions of its holdings, and raised $334 million through equity sales without deploying additional Bitcoin reserves in that raise. Zhibao’s method of accepting Bitcoin as direct payment for new equity distinguishes it from the cash-then-purchase pattern used by many peers.

Corporate Bitcoin treasury strategies link financial results more closely to cryptocurrency price movements. Some participants have adjusted tactics in response to market conditions, including shifts toward active capital management or reductions in holdings.