- Zhibao plans to receive roughly 3,500 BTC through a proposed stock sale.
- The buyer would gain control of the company's board if the deal closes.
- Shares surged after the announcement despite the deal remaining non-binding.
Nasdaq-listed Chinese insurance technology company Zhibao Technology announced plans to build a Bitcoin treasury through a proposed $220 million private financing transaction.
Instead of raising cash and purchasing Bitcoin later, the buyer would contribute approximately 3,500 BTC directly in exchange for newly issued shares, immediately placing Bitcoin on Zhibao's balance sheet.
If completed, the transaction would also give the buyer control of the majority of Zhibao's board of directors, while existing management would continue operating the insurance business during a transition period.
The announcement comes just days after Nasdaq warned the company that its shares had fallen below the $1 minimum listing requirement. Following the news, Zhibao's stock briefly more than doubled before giving back much of the gains.
The proposal remains non-binding and must still pass due diligence, regulatory approvals, Nasdaq compliance requirements and final negotiations before becoming official.
