Tian Ruixiang Holdings Ltd (Nasdaq: TIRX) has disclosed a strategic agreement with an unidentified investor, who will contribute 15,000 Bitcoin in exchange for an equity stake in the firm. This transaction values the contribution at approximately $1.1 billion, based on Bitcoin’s price of about $75,000 at the time of the announcement.

The agreement also includes a strategic partnership focusing on artificial intelligence and cryptocurrency, which involves establishing a joint innovation lab aimed at developing AI-powered trading and risk management tools, along with solutions for blockchain and decentralized applications.

The counterpart has been described as a global digital asset investor with significant experience in both cryptocurrency and tech markets. However, further details regarding the timing of the transaction, custody arrangements, or settlement mechanics have not been disclosed.

Founded in 2010, Tian Ruixiang operates as an insurance brokerage in China, specializing in property and casualty insurance through its subsidiaries. Following this announcement, the company’s shares witnessed a surge of about 190% in early trading, which led to an intraday market capitalization of approximately $9.5 million, still significantly less than the anticipated value of the Bitcoin transaction.

Upon the successful completion of this deal, Tian Ruixiang will become the world’s eighth-largest publicly traded company in terms of Bitcoin treasury holdings. In comparison, Coinbase holds 14,548 Bitcoin, while Riot Platforms claims 18,005 BTC.

The announcement also follows news from a recent disclosure where Tian Ruixiang mentioned being in advanced stages of negotiations to acquire a Hong Kong-based insurance brokerage that is focused on AI and crypto-driven wealth management.

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Market Context: Almost 200 publicly listed companies currently hold Bitcoin, tallying a total of around 1,135,671 BTC. However, due to the recent downturn in the market, many of these companies are facing unrealized losses.

Some of the prominent players include Twenty One Capital, co-founded by Jack Mallers, which launched its treasury in April holding 43,514 Bitcoin. This marks it as the third largest Bitcoin treasury with a disclosed average acquisition cost of $87,280 per Bitcoin.

Despite the initial interest from Wall Street towards Bitcoin treasury companies, their valuation has been struggling significantly as the broader cryptocurrency market continues to decline. Several experts predict that many of these companies may not survive the upcoming challenges in the industry.