Zhibao Technology, a Shanghai-based insurance-technology firm listed on the Nasdaq, has unveiled plans to establish a bitcoin treasury by selling up to $220 million in stock and accepting the cryptocurrency directly as payment for the new shares.
## A Novel Approach to Building a Crypto Reserve The company's proposal stands out from the growing crowd of corporate bitcoin adopters because of how it intends to acquire the digital asset. Rather than raising cash and then converting it into bitcoin, Zhibao plans to take BTC directly as payment for freshly issued shares, effectively bringing the cryptocurrency onto its balance sheet through the equity sale itself.
The move would place Zhibao among a widening list of publicly traded companies seeking to emulate the treasury strategy popularized by firms that have accumulated large bitcoin holdings as a core corporate reserve asset.
Zhibao wants to skip the cash step entirely, taking bitcoin straight in exchange for its shares.
## Questions Around Scale and Share Price Zhibao's ambitions are notable given the company's modest market footprint. Its shares have been trading below $1, a level that raises questions about whether a stock sale of this magnitude is realistic without significant dilution or a dramatic shift in investor sentiment.
The insurance-tech firm operates out of Shanghai, focusing on digital insurance brokerage services. A bitcoin treasury pivot would mark a substantial change in strategic direction for a business rooted in the traditional financial-services sector.
Key details investors will be watching include:
- Whether the full $220 million target can realistically be reached
- How much dilution existing shareholders may face
- The extent to which bitcoin exposure could affect the company's valuation and volatility
For now, the plan signals the continuing appetite among smaller listed companies to tap into the bitcoin treasury trend, even as concerns persist about execution risk and the sustainability of such strategies for firms with limited market capitalization.