Zhibao Technology secures $155M Bitcoin-funded private placement

A Shanghai-based insurance technology company just closed one of the more unusual fundraising deals you’ll see this year. Zhibao Technology, which trades on Nasdaq under the ticker ZBAO, announced a definitive Securities Purchase Agreement to raise $154.7 million through a PIPE financing backed entirely by 2,380 Bitcoin. The deal values each BTC at $65,000, pegged to the market price from July 30. Investors apparently liked what they saw: ZBAO’s stock surged over 79% following the announcement. How the deal works PIPE financing, or Private Investment in Public Equity, lets a public company sell shares directly to select investors rather than going through a traditional public offering. In Zhibao’s case, the company is issuing 442 million units at $0.35 per unit to a group of non-US investors. Each unit comes bundled with one Class A ordinary share and a warrant exercisable at $0.35 over a two-year window. The transaction is expected to close within 12 business days, assuming Nasdaq grants the necessary share authorizations and regulatory approvals come through. This is actually a scaled-down version of what Zhibao originally had in mind. A non-binding term sheet from July 22 target...