Shanghai Insurance Company with $12 Million in Assets Receives 2,380 Bitcoin in Exchange for Its Shares
On August 17, Shanghai-based insurtech company Zhibao Technology, listed on Nasdaq, completed a $154.7 million private stock sale fully paid for in Bitcoin by a syndicate of non-U.S. investors. The investors transferred 2,380 BTC directly to Zhibao's corporate wallet, valued at approximately $65,000 per coin as of July 30. In exchange, they received units comprising Class A ordinary shares and warrants.
Zhibao, which had received a delisting warning from Nasdaq for trading below $1, stated the deal marks a pivotal moment. The new crypto-savvy investors are expected to help expand its AI-powered insurance offerings. The influx of Bitcoin, worth about fifteen times the company's recent market capitalization of $12-15 million, comes as Zhibao had previously expressed doubts about its ability to continue as a going concern due to deficits and cash outflow.
Nasdaq has given Zhibao until January 2027 to regain compliance with the minimum bid price requirement. The deal structure is notably fully cryptocurrency-based, contrasting with other corporate strategies.
cryptonews.ru08/20 05:28
