Zhibao Technology, a Shanghai-based insurance-technology company listed on Nasdaq, said Wednesday that it has signed a non-binding term sheet for a proposed stock sale to be paid in bitcoin.

Under the proposed private investment in public equity, or PIPE, Joyertech and Information OPC would subscribe for Zhibao shares using consideration that the company expects to include about 3,500 BTC, valued at close to $220 million at current prices. Zhibao announced the term sheet in a Newsfile release.

PIPE transactions allow public companies to sell securities privately rather than through a public offering, but they still depend on negotiated final terms and applicable regulatory and exchange requirements. In Zhibao’s case, the proposed use of bitcoin as consideration adds additional closing conditions around valuation, custody and audit treatment.

The bitcoin amount remains subject to final valuation, custody arrangements, an audit, regulatory review, and the signing of definitive agreements. Zhibao emphasized that the term sheet is non-binding, meaning no party is obligated to complete the transaction, and said the proposed deal could be revised or fail to close.

Zhibao (NASDAQ: ZBAO) has described itself as a pioneer of a “2B2C” embedded-insurance model in China. The company also launched what it called China’s first digital insurance brokerage platform in 2020. Under the proposed structure, Zhibao would continue operating its existing business at first.

At closing, however, the buyer would appoint a majority of Zhibao’s board, creating a change in control. The current team would continue managing the existing business until a later “separation, disposition, or other restructuring,” according to the terms described by the company.

Proposed deal would place bitcoin directly on Zhibao’s balance sheet

If completed, the transaction would make Zhibao the holder of a large bitcoin treasury. Instead of raising cash and then purchasing bitcoin in the market, the company would receive the bitcoin directly as payment for shares, placing the digital asset on its balance sheet from the outset.

That structure makes the final terms especially important for shareholders, because a stock subscription can change ownership percentages while the company’s reported assets would include a volatile digital asset. The company has not announced definitive agreements, final share issuance terms, or completed custody arrangements.

The proposal comes amid a broader trend over the past two years in which public companies have reorganized around bitcoin treasury strategies and corporate bitcoin holdings have reached record levels. Zhibao’s stock rose nearly 24% following the news.

The transaction would also reshape a company with employees, insurance clients, and a founding team that built an insurance-technology business in a competitive market. The term sheet indicates continuity for the current staff until the proposed separation, disposition, or restructuring, but the non-binding nature of the agreement leaves the final outcome uncertain.

The broader bitcoin treasury trend has drawn scrutiny. Analysts have described the treasury-company boom as a bubble, and some treasury-focused firms have begun selling bitcoin this year under market pressure.

The original report, “Nasdaq-listed Zhibao Technology to Take 3,500 Bitcoin in Proposed PIPE Financing,” first appeared on Bitcoin Magazine and was written by Micah Zimmerman.