Zhibao Technology Inc. Acquires 2,380 Bitcoin Through PIPE Agreement

Zhibao Technology Inc. has incorporated 2,380 bitcoin (BTC) into its assets through a private investment in public equity (PIPE) agreement. This marks the first acquisition of bitcoin by the Chinese company, which issued new shares in exchange for the BTC. A group of non-U.S. investors deposited the entire amount of BTC into the company's wallet upon closing the deal, complying with Regulation S, which allows listed companies to issue private shares without prior registration. The entity issued 442 million PIPE units for a total amount of $154.7 million. The reference price set was $65,000 per bitcoin and $0.35 per issued unit, which includes one Class A common share and a warrant. With this operation, Zhibao ranks 33rd among companies with the largest bitcoin treasuries globally and is the second Chinese company with the most reserves, behind Next Technology Holding, which holds 5,833 BTC. In total, six Chinese companies are among the top 100 with the largest bitcoin reserves. This accumulation contrasts with regulations in China that prohibit local companies from owning or trading bitcoin. To circumvent these restrictions, firms use schemes with holding companies abroad. Zhibao operates in China through local subsidiaries that comply with national law, while its parent company is based in the Cayman Islands and is listed on Nasdaq.