Zhibao Technology Secures $154.7M in Landmark Bitcoin-Denominated PIPE Deal

In a notable departure from conventional financing, Shanghai-based insurance technology provider Zhibao Technology has finalized a private investment in public equity (PIPE) transaction valued at approximately $154.7 million. The distinctive feature of this deal is its settlement currency: instead of fiat, the consideration was paid entirely in Bitcoin. Investors transferred a total of 2,380 BTC to the company’s designated wallet, based on a mutually agreed reference price of $65,000 per Bitcoin.

Deal Mechanics and Asset Transfer

According to a Form 6-K filing with the U.S. Securities and Exchange Commission and a company announcement, the full amount of 2,380 BTC was delivered to Zhibao’s custody upon closing. This transfer effectively adds a significant digital asset holding to the firm’s corporate treasury.

In exchange, Zhibao issued specially structured “PIPE Units” to the investors at a price of $0.35 per unit. The composition of each unit is twofold:

  • Equity Component: One share of Class A ordinary stock.
  • Warrant Component: One warrant, granting the holder the right to purchase an additional Class A ordinary share at $0.35 per share within a two-year period.

The company has delivered an initial tranche of approximately 395.7 million PIPE Units. The remaining roughly 46.3 million units are contingent upon shareholder approval for an increase in authorized share capital and will be issued without further payment from investors.

Evolution from Letter of Intent to Final Agreement

The transaction originated from a non-binding letter of intent signed in late July, which initially contemplated a financing round involving about 3,500 BTC. The parties executed a definitive agreement on July 31.

A pivotal adjustment was made prior to closing: the financing target was firmly set at $154.7 million in U.S. dollar terms. By maintaining the fixed Bitcoin reference price of $65,000, the final number of Bitcoin to be delivered was recalculated and settled at 2,380 BTC. This refinement underscores a precise alignment between the intended dollar value of the raise and the quantity of digital assets transferred.