$154.7M Bitcoin Deal for Zhibao Technology Inc. Amid Shares Decline

Zhibao Technology Inc., a Shanghai-based digital insurance broker listed on NASDAQ under ZBAO, has raised $154.7 million via a Bitcoin private placement. The company accepted 2,380 Bitcoin at a reference price of $65,000 per coin, becoming the 33rd-largest corporate Bitcoin holder.

The funds will be used to cover general business expenses, research and development, artificial intelligence projects, and further expansion of its digital asset reserve strategy.

Zhibao's shares fell 4.58% in regular trading and an additional 1.63% after-hours, with year-to-date declines nearing 77%. The reference price exceeded the contemporaneous market price of $64,265.99, resulting in an immediate unrealized loss on the acquired assets.

The company's decision to allocate Bitcoin proceeds toward AI projects may influence its competitive positioning in the digital insurance sector.