Zeta Network is laying the groundwork for a significant expansion of its treasury by utilizing Bitcoin. The firm announced that it has utilized SolvBTC to secure a $231 million investment aimed at enhancing its financial capabilities.
Summary
- Zeta Network obtained a $231 million Bitcoin-backed investment through a private placement utilizing SolvBTC, a yield-generating wrapped Bitcoin token.
- The agreement involves Class A shares and one-for-one warrants sold at $1.70 per unit, where each warrant can be exercised at $2.55.
- The company stated that this initiative bolsters its balance sheet and reaffirms its long-term confidence in Bitcoin’s fundamentals.
As per a press release from Oct. 15, Zeta Network Group has entered into a securities purchase agreement for a private investment in public equity amounting to around $230.8 million.
According to the deal’s terms, funds will be provided to Zeta in Bitcoin (BTC) or SolvBTC rather than U.S. dollars. This capital injection, anticipated to finalize on Oct. 16, will be directed toward acquiring shares and warrants, thereby expanding Zeta’s treasury with a digital asset intended for institutional use, as stated by the company.
Bitcoin-backed structure reinforces Zeta’s treasury strategy
Under the private placement terms, Zeta Network is offering Class A ordinary shares and one-for-one warrants, each exercisable at $2.55. The securities are sold together at a total price of $1.70 per unit, establishing a financing structure that provides investors with both equity exposure and an option on Zeta’s long-term valuation.
Zeta Network positioned this strategy as a disciplined, counter-cyclical approach that affirms its belief in Bitcoin’s long-term fundamentals. By accepting a Bitcoin-backed asset as payment, the company aligns its treasury with the digital currency’s perceived value and scarcity despite current market fluctuations.
“Incorporating SolvBTC into our treasury enhances financial resilience with a tool that merges Bitcoin’s scarcity with sustainable yield. It’s a prudent, institutional approach to growth,” said Patrick Ngan, Chief Investment Officer at Zeta Network Group.
According to the firm, SolvBTC represents a new category of Bitcoin-related financial instrument aimed at bridging corporate treasury management with on-chain infrastructure.
Each SolvBTC token is fully backed 1:1 by Bitcoin, held in regulated custody, with reserves verified on-chain, providing a framework designed for institutional treasury applications where transparency and compliance are key. This allows companies to gain Bitcoin exposure while potentially generating yield, moving beyond mere passive holding.
At the same time, Zeta Network is developing a Bitcoin-focused institutional finance platform. The company remarked that its operations aim to integrate digital-asset treasury management, Bitcoin liquidity aggregation, and sustainable mining practices within the regulated framework of its Nasdaq listing.
