Zhibao Technology has signed a non-binding term sheet with Joyer Tech for a $4 billion private investment in public equity (PIPE) deal tied to Bitcoin. The announcement landed just days after the company received a deficiency notice from Nasdaq, putting its listing status in question.
The $4 billion Bitcoin PIPE
The deal is structured as a PIPE — a private placement of shares to institutional investors at a discount. Joyer Tech would provide the capital, which Zhibao plans to use for Bitcoin-related investments. The term sheet is non-binding, meaning neither party is obligated to close. That gives the deal a provisional feel, especially given the size.
The Nasdaq deficiency notice
Earlier this week, Nasdaq informed Zhibao that it no longer met the exchange's continued listing requirements. The exact reason wasn't disclosed in the announcement, but deficiency notices typically stem from a low stock price, insufficient market value, or missed filing deadlines. The timing isn't great — a company fighting to stay listed is now pitching a $4 billion crypto deal.
Zhibao has a limited window to respond to Nasdaq and submit a plan to regain compliance. Meanwhile, the PIPE term sheet gives the company 30 days to negotiate a definitive agreement. If both sides can't agree on final terms, the deal dies. If they do, Zhibao will need shareholder approval and regulatory clearance. The clock is ticking on two fronts.
