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.
