Zhibao Sells $220M in Stock for 3,500 Bitcoin
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- Zhibao Technology signed a non-binding term sheet with Joyertech and Information OPC for a PIPE financing deal involving roughly 3,500 Bitcoin, worth approximately $220 million at current BTC prices.
- Per the term sheet, Joyertech would designate a majority of Zhibao's board at closing—effectively taking control of the company—while current management continues running day-to-day insurance operations until a future 'separation, disposition, or other restructuring.'
- Zhibao received a Nasdaq deficiency letter on July 15 for trading below $1 per share, with the stock hovering around $0.22 before the announcement.
- After the Bitcoin treasury news, Zhibao's stock (ZBAO) spiked from $0.15 to $0.40—more than 2x in under four hours—before settling around $0.24, still a roughly 60% gain.
- Zhibao has 180 calendar days—until January 6, 2027—to regain Nasdaq's $1 minimum bid price compliance.
- The transaction is non-binding and remains subject to due diligence, regulatory review, Nasdaq compliance, and execution of definitive agreements.
- More than 150 publicly traded companies now hold Bitcoin on their balance sheets following the Strategy (formerly MicroStrategy) playbook, though the trend has produced blowups including U.K.-based Satsuma Technology's recent decision to sell its remaining Bitcoin and shutter operations.
Why it matters: Zhibao isn't just adding Bitcoin—it's ceding board control to Joyertech to do it, turning a struggling $0.22 micro-cap InsurTech into a Bitcoin treasury vehicle overnight. With a January 6, 2027 Nasdaq deadline and a non-binding term sheet that briefly 2x'd then faded to a 60% gain, Zhibao's survival now depends on closing a deal whose structure mirrors recent failed crypto-treasury pivots like Satsuma.
