Zhibao Technology Raises $154.7M in Bitcoin-Funded Private Placement
Shanghai-based InsurTech firm Zhibao Technology has completed a private placement funded entirely in Bitcoin, raising $154.7 million by issuing 442 million units to investors. The company will hold 2,380 BTC in treasury reserves, joining a growing roster of public companies treating Bitcoin less like a speculative asset and more like a balance sheet staple.
Deal Details
The deal closed on August 17, with each unit priced at $0.35 and consisting of one Class A ordinary share plus a warrant exercisable at the same price over two years. The stock responded accordingly: ZBAO surged more than 79% after the definitive agreement was announced.
The transaction traces back to a non-binding term sheet dated July 22, which initially contemplated approximately 3,500 BTC changing hands. By the time the definitive Securities Purchase Agreement was signed on July 31, that figure had been trimmed to 2,380 BTC.
Investor and Structure
The investors behind the capital aren’t household names. Entities including Metaverse Intelligence Tech Ltd and DYT Info Pte. Ltd. participated in the round, both non-US capital sources. The structure of the deal, a PIPE (Private Investment in Public Equity), is a well-worn mechanism in traditional finance that lets public companies raise money by selling securities directly to a select group of investors rather than going through a public offering.
Business Implications
Holding the Bitcoin rather than immediately liquidating it signals that Zhibao views BTC as more than just a funding mechanism. The company explicitly stated it will retain the 2,380 BTC in treasury for business growth, bringing its total Bitcoin holdings to that same figure. This wasn’t a company that already had a Bitcoin stash. The PIPE deal created the entire position from scratch.
Market Reaction
The 442 million shares issued in this deal represent significant dilution for existing shareholders, though the 79% stock price jump suggests the market viewed the Bitcoin inflow as more than compensating for the equity expansion.
At a $65,000 reference price, Zhibao’s 2,380 BTC position is worth $154.7 million, a position that dwarfs its market capitalization prior to the deal.