On August 17, Zhibao Technology completed a stock sale worth $154.7 million, fully paid in Bitcoin by a group of non-U.S. investors.
Shanghai-listed insurance technology company Zhibao, traded on Nasdaq, received 2,380 bitcoin. Zhibao's shares recently traded at less than a dollar, and the company received a deficiency notice from Nasdaq.
2,380 Bitcoin Were Directly Deposited to Corporate Wallet at $65,000 per Coin
Zhibao reported in a Form 6-K that it amended the underlying securities purchase agreement and closed the transaction on the same day.
Investors transferred 2,380 Bitcoin to a dedicated company wallet to pay the full amount of $154.7 million. This was calculated based on a base rate of $65,000 per coin, pegged to the Bitcoin price on July 30.
The buyers purchased 442 million units at $0.35 each. Each unit consists of one Class A ordinary share and a two-year warrant.
According to the documents, 395,678,152 shares were issued at the closing, with the remaining 46,321,848 to be issued after shareholder approval of an increase in authorized shares, without any additional payments.
On July 22, Zhibao announced a preliminary, non-binding agreement. As reported by Cryptopolitan , according to the initial plan, Joyertech and Information OPC were to subscribe to a PIPE (Private Investment in Public Equity) of about 3,500 Bitcoin, or roughly $220 million, and appoint a majority of the board members after the deal's completion.
Under the agreement terms, Zhibao's existing team was to continue managing the old insurance business until a 'spin-off, sale, or other restructuring' occurred.
The actual deal amount was smaller—2,380 coins and $154.7 million. The Form 6-K report states the funds came from a syndicate of non-U.S. investors, whose identities were not disclosed, and were signed by Zhibao CEO Jinmei Guo Hellström.
Director Botao Ma called this 'one of the most pivotal moments' in the company's ten-year history. He noted that the new investors possess cryptocurrency expertise that Zhibao can leverage to expand its range of AI-based insurance products.
Nasdaq Gives Zhibao Until January 2027 to Break the $1 Mark
According to market data, Zhibao's market capitalization this summer ranged from $12 to $15 million. As reported by Cryptopolitan , the value of Bitcoin received, based on July data, was approximately fifteen times the total value of the company's shares.
Zhibao, traded under the ticker ZBAO, claims to be the first company in China to implement an embedded 'B2B2C' digital insurance model and launched the country's first digital insurance brokerage platform in 2020.
ZBAO shares closed below $1 from May 27 to July 9, and on July 15, Nasdaq issued a minimum bid price deficiency notice to the company.
Zhibao must bring its operations into compliance by January 6, 2027. Previously, in documents filed with the U.S. Securities and Exchange Commission (SEC), the company expressed 'substantial doubt' about its ability to continue as a going concern, citing accumulated deficits and cash outflow.
Zhibao has an entirely cryptocurrency-based structure. In contrast to it, Strategy, the company that developed the strategy, has suspended its weekly purchases. Japanese Metaplanet is investing 2,100 Bitcoin, worth about $132 million, into U.S. Treasury bonds.
According to Cryptopolitan , about 40% of the top 100 companies holding Bitcoin are now trading below the net asset value of their coins.
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