Just a week after receiving a deficiency notice from Nasdaq due to its plunging share price, Shanghai-based insurtech firm Zhibao Technology Inc. has taken a drastic step. The company, trading under the ticker symbol ZBAO, officially signed a non-binding term sheet valued at $220 million to issue new shares.
The buyer is an entity named Joyertech and Information OPC. However, what makes this transaction stand out is not merely the deal size, but the payment method. Instead of cash, Joyertech will pay for the newly issued shares entirely using approximately 3,500 Bitcoin through a private investment in public equity (PIPE) structure.
Strict Condition: Handing Over Majority Board Control
Such a massive capital injection does not come without strings attached. In exchange for adding thousands of Bitcoin to the corporate balance sheet, Joyertech secured the absolute right to appoint a majority of Zhibao’s new board of directors. This move effectively transfers overall control of the company from the legacy management to the new investor.
Even so, during this transition period, Zhibao’s existing management will retain control over day-to-day operations of its core insurance business. These operational responsibilities will continue at least until the reconstituted board makes formal decisions regarding a spin-off, asset divestment, or a complete business restructuring. Zhibao has long claimed to be a pioneer of B2B2C embedded digital insurance platforms in China since 2020.
Racing Against the Exchange Deadline
This crypto-backed investment deal comes right as the company is on the brink. On July 15, Nasdaq issued a formal deficiency notice after ZBAO’s stock price tumbled well below the $1 minimum bid requirement, briefly sinking to a critical $0.22. Under Wall Street exchange rules, management now has 180 days - specifically until January 6, 2027 - to bring its share price back into compliance with listing standards.
The pivot toward digital assets aligns with a broader trend of public companies stacking Bitcoin. More than 150 publicly traded firms currently hold the cryptocurrency on their balance sheets. Even so, Bitcoin reserves are no guarantee of business survival. Satsuma Technology, a UK-based public company, recently announced plans to liquidate all of its Bitcoin holdings and wind down company operations entirely.
For Zhibao and Joyertech, the $220 million transaction is not yet finalized. The entire deal remains contingent upon due diligence results, regulatory compliance, formal Nasdaq approval, and the execution of definitive agreements. The remaining six months now serve as a crucial test of whether this Bitcoin stash can save ZBAO on the stock exchange or merely serve as an exit ticket for its legacy owners. Sourced from Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
