Zhibao Takes Novel Path to Bitcoin Treasury: Accepting 3,500 BTC as Payment in Stock Deal

A New Fundraising Model Takes Shape

Nasdaq-listed Zhibao Technology has announced plans to establish a Bitcoin treasury through an unconventional stock offering structure. The Shanghai-based digital insurance provider signed a non-binding term sheet with investment firm Joyertech and Information OPC to acquire approximately 3,500 Bitcoin as payment for new company shares. At current market valuations, the arrangement represents roughly $220 million in capital for Zhibao, according to the company’s press release.

The transaction bypasses the traditional approach where companies raise cash and subsequently purchase Bitcoin through public markets. Instead, investors directly contribute cryptocurrency in exchange for equity ownership. This direct exchange of digital assets for securities underscores a maturing view of Bitcoin’s utility beyond speculation.

Control Shift and Operational Implications

The deal carries important governance consequences alongside financial benefits. Upon transaction completion, Joyertech would secure the right to designate a majority of Zhibao’s board of directors, granting the Bitcoin investors substantial strategic influence. However, existing management would retain operational authority over day-to-day business execution, creating a hybrid control structure.

Zhibao operates as a leading InsurTech platform in China, having launched the country’s first digital insurance brokerage in 2020. The company provides cloud-based software solutions enabling other businesses to embed insurance products within their customer offerings—a business model increasingly valued across Asia.

Nasdaq Pressure and Market Response

The announcement arrives amid urgency for Zhibao. The company received a Nasdaq deficiency notice on July 15, citing trading below the $1 minimum share price required for continued listing. At that point, shares traded near $0.22, placing Zhibao at genuine delisting risk.

Markets greeted the Bitcoin treasury news enthusiastically. Within four hours of the announcement, the stock surged from $0.15 to $0.40—a 165% spike. Though the momentum subsequently retreated to approximately $0.24, the eventual 60% gain reflected investor confidence in the strategic pivot. The transaction simultaneously addressed capital needs and attracted cryptocurrency-aligned investors skeptical of traditional markets.

Source: Zhibao Technology, via Decrypt. Not financial advice.

As institutional adoption of Bitcoin as transactional currency accelerates, deals structured around direct crypto payment challenge the notion that digital assets serve only speculative purposes, potentially reshaping how companies raise capital and manage treasuries across markets.