Zhibao Technology Inc. (NASDAQ: ZBAO) established a corporate treasury reserve of 2,380 Bitcoin worth $154.7 million following the closing of a private placement on Tuesday. The Shanghai-based digital insurance broker secured the funding through the issuance of 442 million units at $0.35 each, with each unit comprising one Class A ordinary share of par value $0.0001 and a two-year warrant exercisable at $0.35.

The total purchase price was satisfied through the direct contribution of 2,380 Bitcoin to the company’s designated wallet account, based on a reference price of $65,000 per Bitcoin. Zhibao stated it plans to deploy the funds toward general business expenses, business expansion, research and development, artificial intelligence projects supporting its operations, and further advancement of its digital asset reserve strategy.

Market Position and Share Performance

With this acquisition, Zhibao becomes the 33rd-largest corporate Bitcoin holder, surpassing firms including Core Scientific Inc. (NASDAQ: CORZ) and Cipher Digital Inc. (NASDAQ: CIFR), according to bitcointreasuries.net. Michael Saylor’s Strategy Inc. (NASDAQ: MSTR) remains the largest holder, with over $53 billion worth of Bitcoin on its balance sheet.

Despite the treasury expansion, Zhibao shares faced downward pressure. The stock closed 4.58% lower at $0.2084 during Tuesday’s regular trading session and fell an additional 1.63 in after-hours trading. Year-to-date, the stock has declined nearly 77%. Benzinga’s Edge Stock Rankings indicate weak price momentum for ZBAO across short, medium, and long-term horizons.

At the time of writing, Bitcoin was trading at $64,265.99, up 0.31% over the previous 24 hours.

What the Numbers Show

The valuation discrepancy between the reference price used for the transaction and the prevailing market price highlights immediate unrealized losses on the treasury position. Zhibao valued the incoming Bitcoin at $65,000 per coin to satisfy the purchase price, while the spot market price stood at $64,265.99 shortly after the announcement. This implies an immediate paper loss of approximately $1,734 per Bitcoin, or roughly $4.1 million in aggregate value relative to the closing market rate, before accounting for any subsequent price movements or transaction costs.

Zhibao Technology Inc. has entered into a non-binding term sheet with JOYERTECH AND INFORMATION OPC for a proposed private investment in public equity (PIPE) financing. The consideration for the transaction is expected to include 3,500 Bitcoin. The proposed deal remains subject to the completion of satisfactory legal, financial, and operational due diligence.

Transaction Terms and Conditions

The signed term sheet outlines the principal terms of the proposed investment. However, the agreement is non-binding, and the transaction is contingent upon several factors. These include the negotiation and execution of definitive agreements, applicable corporate and regulatory approvals, and compliance with Nasdaq listing requirements.

Key Details of the Proposed Financing

Closing Conditions and Risks

The consummation of the proposed Transaction is not assured. It depends on the satisfaction of other customary closing conditions alongside the due diligence and approvals. Zhibao Technology stated that there is no guarantee definitive agreements will be executed or that the transaction will be completed on the terms described or at all.