Zhibao Technology, a Shanghai-based insurance-technology firm listed on Nasdaq, said Wednesday it has signed a non-binding term sheet for a private investment in public equity (PIPE) financing that would be paid in Bitcoin—approximately 3,500 coins worth near $220 million at current prices. The buyer, Joyertech and Information OPC, would subscribe for Zhibao shares with consideration the company expects to include about 3,500 BTC, though the figure remains subject to final valuation, custody arrangements, audit, regulatory review, and definitive agreements. The structure follows a trend of public companies converting to Bitcoin treasury models, with corporate Bitcoin holdings climbing to records over two years.
Joyertech and Information OPC to Gain Board Control in Transaction
The transaction structure would hand control to the buyer at closing. Joyertech and Information OPC would name a majority of Zhibao's board, a control transition that would give the newcomers the steering wheel while the current team manages the legacy insurance-technology operation until a later "separation, disposition, or other restructuring." Zhibao (NASDAQ: ZBAO), which pioneered a "2B2C" embedded-insurance model in China and launched the country's first digital insurance brokerage platform in 2020, would keep running its existing business at first. The company stressed that the term sheet binds no one, and that the transaction may change or fall through.
Rather than raise cash and buy coins on the market, Zhibao would take the Bitcoin itself as payment, a swap that seats a treasury on its balance sheet from day one. The deal would turn a modest insurance-tech company into a home for a large pile of Bitcoin, with new owners in charge.
Zhibao Stock Jumped 24% Following Announcement
Zhibao's stock jumped near 24% on the news. The reinvention mirrors a pattern that has swept public markets over two years, as firms remake themselves around a Bitcoin treasury and corporate holdings climb to records. Behind ZBAO are employees, insurance clients, and a founding team that built something new in a crowded market, and the term sheet would fold that story into a treasury vehicle shaped by people who may value the shell as much as the business. For the current staff, the promise is continuity "until the separation"—words that carry their own uncertainty.
Analysts Warn of Treasury Company Risks
The wager holds warning signs. Analysts have called the treasury boom a bubble, and some treasury firms have started selling their coins under market pressure this year. The structure of Zhibao's proposed deal—taking Bitcoin as direct consideration rather than raising capital to purchase it—represents a variation on the treasury-company model, but it faces the same market headwinds that have pressured other Bitcoin-holding public companies.
FAQ
What did Zhibao Technology announce on Wednesday?
Zhibao Technology announced it signed a non-binding term sheet for a PIPE financing in which the buyer, Joyertech and Information OPC, would subscribe for shares with consideration expected to include approximately 3,500 Bitcoin, worth near $220 million at current prices. The transaction remains subject to final valuation, custody arrangements, audit, regulatory review, and definitive agreements.
How would the transaction change Zhibao's control structure?
Joyertech and Information OPC would name a majority of Zhibao's board at closing, handing control to the newcomers while the current team manages the legacy insurance-technology business until a later "separation, disposition, or other restructuring." Zhibao stressed the term sheet is non-binding and the deal may change or fall through.
What risks do analysts see in Bitcoin treasury companies?
Analysts have called the treasury boom a bubble, and some treasury firms have started selling their coins under market pressure this year, indicating that Bitcoin-holding public companies face significant market headwinds.
