Zeta Network Group announced Wednesday that it raised about $230.8 million through a non-public stock sale, with investors paying in Bitcoin (BTC), or SolvBTC — a wrapped Bitcoin-backed token issued by Solv Protocol.
As a part of the transaction, investors will receive newly issued Class A typical stock and warrants, allowing them to later purchase additional shares for $2.55 each. Each stock and warrant pair was sold for a complete price of $1.70.
According to Zeta, the agreement will strengthen its balance sheet with Bitcoin-based assets as a part of a broader treasury strategy. “By integrating SolvBTC into our treasury, we’re improving financial resilience with a tool that mixes Bitcoin’s scarcity with sustainable returns,” said Patrick Ngan, Chief Investment Officer of Zeta Network.
Zeta Network, a digital infrastructure and fintech company developing an institutional Bitcoin platform, expects the deal to shut on Thursday, pending closing conditions.
Solv Protocol is an on-chain Bitcoin asset management platform that issues SolvBTC, a 1:1 wrapped Bitcoin-backed token designed for institutional use in yield and liquidity strategies.
Ryan Chow, the CEO of Solv Protocol, said that “public firms are redefining what it means to maintain Bitcoin productive.”
Bitcoin return strategies are emerging
While Bitcoin stays the first asset for digital asset treasuries (DATs) – a technique popularized by Michael Saylor in 2020 – a debate has emerged over whether proof-of-stake networks resembling Ethereum (ETH) or Solana (SOL), which generate yield for validators, could offer a more attractive long-term return profile.
In the meantime, firms are finding ways to place Bitcoin to work.
On September 25, the world's largest asset manager BlackRock filed to register a Delaware trust company for a Bitcoin Premium Income ETF. Eric Balchunas, an ETF analyst at Bloomberg, said the proposed fund would generate returns by writing covered call options on Bitcoin futures and collecting the choice premiums.
Source: Eric Balchunas
Coinbase launched a Bitcoin Yield Fund in May, offering non-US institutional investors the chance to earn returns on BTC holdings. The aim of the fund is to generate an annual net return of 4% to eight% for investors.
At this 12 months's Token2049 event, Chow said that Bitcoin may be used to secure networks. He expects 1000’s of Bitcoin to enter proof-of-stake ecosystems like Solana in the longer term.
