Zhibao Technology Inc. (NASDAQ:ZBAO) closed a $154.7 million Bitcoin (CRYPTO: BTC)-funded private placement on Tuesday, establishing a corporate treasury reserve of 2,380 BTC.
New Bitcoin Treasury Firm on the Block
The Shanghai-based digital insurance broker issued 442 million units at $0.35 each, combining one Class A ordinary share, with a par value of $0.0001 per share, and a two-year warrant exercisable at $0.35.
“The total purchase price has been fully satisfied and deemed paid in full at the closing through the contribution by the Investors of 2,380 Bitcoins to the Company’s designated wallet account, based on a reference price of $65,000 per Bitcoin,” the firm said in a press release.
The Company plans to use the funds for general business expenses, business expansion, research and development, AI projects that support its operations, and to advance its digital asset reserve strategy.
ZBOA Shares Slide
Zhibao is now 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) leads the pack, holding over $53 billion worth of Bitcoin on its balance sheet.
Price Action: At the time of writing, BTC was exchanging hands at $64,265.99, up 0.31% over the last 24 hours, according to data from Benzinga Pro.
Zhibao shares fell 1.63 in after-hours trading after closing 4.58% lower at $0.2084 during Tuesday’s regular trading session. Year-to-date, the stock has plunged nearly 77%.
ZBAO stock continues to show weak price momentum across the short, medium and long term, according to Benzinga’s Edge Stock Rankings.
Photo: Memory Stockphoto / Shutterstock
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