Zhibao Technology Raises Funds in Bitcoin Deal, Receives 2,380 BTC and Reshapes Board

Shanghai-listed Zhibao Technology has completed a PIPE financing that brought in 2,380 bitcoin from 10 non-U.S. investors and set off a sweeping change in the company’s capital structure and boardroom control. The company said it signed the securities purchase agreement on July 31 and closed the deal on Aug. 17. Zhibao issued 442 million PIPE units at $0.35 each, for total gross proceeds of about $154.7 million. The investors paid in bitcoin, using a reference price of $65,000 per coin. Each unit includes one Class A ordinary share and one two-year warrant with the same $0.35 exercise price. At closing, Zhibao delivered about 395.7 million units immediately. The remaining roughly 46.32 million units will be issued after shareholder approval, with no additional payment from the investors. The company also noted that the $0.35 price applies to the package of one share plus one warrant, not to a standalone common share. Zhibao said the money will fund working capital, business development and R&D, including more AI applications for its digital insurance business and a bitcoin-based digital asset reserve strategy. In other words, the firm is still running its embedded insurance operation while adding bitcoin to its balance sheet and treasury management. The governance changes are large. After closing, the board will have five members. Four current directors resigned, and investors will nominate four seats. Chairman and CEO Botao Ma will remain on the board but will no longer serve as CEO. The investors will also name the new CEO and CFO. The 10 investors all used the same terms: each subscribed for 44.2 million units and paid with 238 bitcoin, equal to $15.47 million. They are Metaverse Intelligence Tech, DYT Info, YY Tech, Kellyview Investment, Joyer Investment, Dundas Technology, Dada Business Trading, Vmade, Easygo Business and BCI Tech. By registration, five are based in Hong Kong, two in Singapore, and the other three are registered in the British Virgin Islands, Cayman Islands and Marshall Islands. That only shows where the legal entities are set up, not where the money came from or where the operations are actually run. A review of earlier filings suggests that nine of the 10 investors had already appeared in disclosures tied to CIMG, a U.S.-listed company that now focuses on health products and AI computing hardware while also holding bitcoin in treasury. Metaverse Intelligence Tech, YY Tech, DYT Info, Joyer Investment, Dada Business Trading, Vmade and Easygo all showed up in CIMG shareholder lists. Kellyview and Dundas were tied to a CIMG acquisition of Daren Business Technology and were later assigned 37.24 million CIMG shares each with performance conditions in March 2026. The only investor not found in those filings was Singapore-based BCI Tech. CIMG’s own history with bitcoin financing looks similar. In its latest filing, the company said investors paid about $13.5 million in bitcoin on June 23, 2026, to subscribe for 900 million common shares and an equal number of warrants. Those warrants were later fully exercised, bringing total issuance to 1.8 billion shares. As of June 30, 2026, CIMG held 1,145.4 bitcoin, up from 730 bitcoin three months earlier, with an ending fair value of about $67.19 million. There is also overlap in personnel. Zhibao’s new chairman and CEO, Jinmei Guo Hellstroem, and new director Zongmei Huang both previously served as CIMG directors. Another new director, Dixon Perez Dai, disclosed an affiliation with Joyer Tech and Information OPC, which was also listed as a CIMG shareholder. The deal comes even as Zhibao’s core business continues to grow. The company operates an embedded digital insurance model for business clients and then serves the end users behind those channels, including consumers and small businesses. For the six months ended Dec. 31, 2025, Zhibao reported revenue of RMB 206 million, up 41% year over year. Gross margin rose to 34.8% from 29.1%, and net profit came in at RMB 600,000, compared with a RMB 600,000 loss a year earlier. At that time, the company said its platform had developed more than 40 digital insurance solutions, connected over 3,100 business channels and reached more than 27 million end users. On Aug. 12, Zhibao also announced a joint venture with Dongbaohui to use AI for needs identification, product matching and sales support in long-term insurance products. The venture is still in its early stage, and no revenue contribution has been disclosed. Even with that growth, the stock has been under pressure. Zhibao listed on Nasdaq on April 2, 2024 at $4 per share. By Aug. 17, 2026, ZBAO closed at $0.2184, implying a drop of about 94.5% from the IPO price. The bitcoin financing sparked sharp trading activity. On July 31, when the deal was announced, ZBAO opened at $0.278, touched an intraday high of $0.353 and closed at $0.2001, up 16% from the previous session. Volume reached about 380 million shares, compared with roughly 5.91 million the day before. On Aug. 3, the stock rose another 27.54% before giving back part of the gain. On Aug. 17, the day the closing was announced, ZBAO fell 3.49% to $0.2184, though that was still about 26.6% above the $0.1725 close from the session before signing. Market cap also needs to be recalculated after the new shares are counted. Some quote sites had been using an old share count of about 34.06 million shares, which made Zhibao look worth only about $7 million. That figure does not include the roughly 395.7 million new shares issued in this PIPE. Based on the company’s July 31 SEC filing, Zhibao had about 49 million Class A and Class B common shares at the time. Adding the shares already delivered at closing brings the estimated post-closing share count to about 444.7 million. At the Aug. 17 closing price, that implies a market value of about $97.1 million. That estimate still excludes the remaining roughly 46.32 million units to be issued after shareholder approval. If those shares are also issued and the stock price stays unchanged, the common share count would rise to about 491 million, implying a market cap of about $107.2 million. The transaction also includes 442 million two-year warrants, which would add even more dilution if exercised. In practical terms, Zhibao did not just receive 2,380 bitcoin. It also changed its asset mix, its share structure and its governance model in one transaction.