Zhibao Technology Plans $220 Million Bitcoin Treasury via PIPE Deal

Under the terms of the proposed arrangement, Joyertech and Information OPC would provide the Bitcoin in exchange for newly issued securities. The transaction grants the investors the right to nominate a majority of Zhibao’s board members, effectively handing over control of the Nasdaq-listed firm. While the company intends to maintain its digital insurance operations in the short term, filings suggest management expects a eventual restructuring or disposal of the legacy business.

Ownership and Compliance Hurdles

The market response was swift, with ZBAO shares spiking from $0.15 to nearly $0.40 following the announcement before settling near $0.24. This volatility arrives during a precarious period for the firm, which received a Nasdaq deficiency notice on July 15 for failing to maintain the exchange’s $1 minimum bid requirement. Zhibao now faces a January 2027 deadline to regain compliance.

Securing the deal remains a complex hurdle. The agreement is non-binding and hinges on rigorous audit verification, custodial arrangements, and regulatory reviews. Unlike firms that build reserves through open-market purchases using cash flow, Zhibao’s model attempts a direct asset-for-equity swap. Whether this strategy will survive the necessary due diligence and satisfy Nasdaq’s stringent listing standards remains the defining question for the company’s future.