Nasdaq's Zhibao Technology Strikes $154.7M PIPE to Be Paid in 2,380 BTC, Investors to Take Board Control

Nasdaq-listed Zhibao Technology, a China-based insurtech company, has entered into a $154.7 million private investment in public equity (PIPE) agreement dated July 31, according to CryptoSlate cited by ChainCatcher. Under the deal, investors will pay in 2,380 bitcoins priced at a fixed $65,000 per BTC. The agreement names 10 investor entities; each will receive 44.2 million units for $15.47 million, funded with 238 BTC. In total, investors are buying 442 million units at $0.35 per unit. Each unit consists of one Class A common share plus a two-year warrant to purchase one additional share at an exercise price of $0.35. If all warrants are exercised, the potential issuance rises to 884 million shares. After closing, investors will appoint four of the five board members and choose the new CEO and CFO. The four incumbent directors and the current CEO and CFO are set to resign. The issuance is expected to materially dilute existing holders. The 49,001,662 shares will account for about 9.98% of the post-transaction share base, and Class B shareholders will lose their 20-to-1 voting advantage. If all new warrants are later exercised, the share count would increase to at least 933,001,662 shares, cutting the pre-PIPE ownership stake to roughly 5.25%. The parties expect to close within 12 business days after July 31, or on another date agreed in writing. Required capital increases and regulatory approvals have not yet been finalized.