Zhibao Technology is moving forward with a distinctive plan to raise $220 million worth of Bitcoin through a private investment in public equity (PIPE) deal. Instead of the usual cash payment, the Shanghai-based insurer aims to receive cryptocurrency directly in exchange for newly issued shares.
The agreement, still preliminary and subject to multiple approvals, would bring about 3,500 BTC straight to Zhibao’s balance sheet. This approach differs from traditional PIPE deals where companies typically raise cash before converting it into Bitcoin on the open market.
Unpacking the deal and its stakes
Normally, PIPE involves private investors sending cash to a public company for shares, but here investors Joyertech and Information OPC will pay with Bitcoin. If the deal closes, Zhibao transitions into a Bitcoin-holding public company without a fiat conversion step. However, this depends on final audits, custodial setup, regulatory clearance, and valuation confirmations.
Alongside the influx of Bitcoin, Joyertech is poised to gain majority control of Zhibao’s board, shifting governance significantly. Zhibao’s current management will remain temporarily in charge but only during a transitional period.
The company is already under pressure from Nasdaq, which issued a deficiency notice due to Zhibao’s share price falling below the $1 minimum bid requirement. The deadline to regain compliance is January 6, 2027, adding urgency to any financing activity. Failure to meet listing standards could jeopardize the transaction.
This unusual PIPE highlights how crypto is reshaping financing structures for public companies. Still, the regulatory environment remains a critical factor, especially for smaller firms navigating Nasdaq's rules.
