Zhibao's $220 million Bitcoin PIPE deal comes with new board control

Zhibao Technology said on July 22 it had signed a non-binding term sheet. The Nasdaq-listed Shanghai insurance-tech company agreed to accept about 3,500 Bitcoin, worth about $220 million, for new stock.

The buyer would pick most of the board and take control. Zhibao got a Nasdaq deficiency notice a week earlier for trading below $1. And the proposed Bitcoin position dwarfs its entire market value.

Zhibao takes Bitcoin instead of cash for new shares

The buyer is a company named Joyertech and Information OPC. A term sheet disclosed in a Form 6-K would have it subscribe to a private investment in public equity, or PIPE. This is a sale of shares directly from the company to a private investor, not on the open market.

The consideration is about 3,500 BTC, which in its own press release Zhibao said was worth around $220 million. The coins would be on the balance sheet at closing, not purchased on an exchange.

As of writing this, BTC was changing hands around $65,144. Since the Bitcoin is paid directly for equity, the arrangement does not add any new buying pressure to the open market.

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