Nasdaq-listed Zhibao Technology Plans to Acquire 3,500 Bitcoin in PIPE Deal

Zhibao Technology, a Shanghai-based insurance-technology company listed on Nasdaq, announced it has signed a non-binding term sheet for a private investment in public equity (PIPE) deal. The deal involves a buyer, Joyertech and Information OPC, subscribing for Zhibao shares in exchange for approximately 3,500 bitcoins, valued at nearly $220 million at current prices. The transaction remains subject to final valuation, regulatory review, and definitive agreements. Zhibao emphasized that the term sheet is non-binding and the deal could change or fall through.

This move signifies a shift where a public company is directly accepting bitcoin as payment, effectively creating a bitcoin treasury on its balance sheet from the outset. Rather than purchasing bitcoin on the open market, Zhibao would hold the coins as part of its corporate assets, aligning with a broader trend of firms building bitcoin reserves.

The company intends to continue its existing operations initially, with the new owners expected to gain control of the board at closing, potentially leading to restructuring or a separation in the future. Zhibao's stock responded positively, rising nearly 24% following the announcement.

This development underscores the growing acceptance of bitcoin as a corporate treasury asset, especially among publicly traded companies seeking to diversify their holdings or hedge against inflation. However, some analysts have warned that the treasury strategy may carry risks, as the market for corporate bitcoin holdings remains volatile and subject to regulatory scrutiny.

Overall, this transaction highlights the increasing integration of bitcoin into corporate finance strategies and signals ongoing institutional interest in holding bitcoin as part of a diversified treasury portfolio.