Zeta Network Group announced on Wednesday that it has secured approximately $230.8 million through a private share sale, with investors contributing in Bitcoin (BTC) or SolvBTC — a wrapped Bitcoin-backed token issued by Solv Protocol.
As part of the agreement, investors will receive newly issued Class A ordinary shares along with warrants that permit them to purchase additional shares later at a price of $2.55 each. The combined selling price for each share and warrant pair was set at $1.70.
According to Zeta, this arrangement will bolster its balance sheet with Bitcoin-based assets as part of a comprehensive treasury strategy. “By integrating SolvBTC into our treasury, we’re enhancing financial resilience with an instrument that combines Bitcoin’s scarcity with sustainable yield,” stated Patrick Ngan, Zeta Network’s chief investment officer.
Zeta Network, a digital infrastructure and fintech firm focusing on an institutional Bitcoin platform, anticipates concluding the deal on Thursday, contingent on closing requirements.
Solv Protocol operates an on-chain Bitcoin asset management platform that issues SolvBTC, a 1:1 wrapped Bitcoin-backed token aimed at institutional use in yield and liquidity strategies.
Ryan Chow, the CEO of Solv Protocol, remarked that “listed entities are redefining what it means to hold Bitcoin productively.”
Related: Solv brings RWA-backed Bitcoin yield to Avalanche blockchain
Bitcoin yield strategies emerge
While Bitcoin continues to be the primary asset for digital asset treasuries (DATs) — a strategy popularized by Michael Saylor in 2020 — discussions have arisen regarding whether proof-of-stake networks like Ethereum (ETH) or Solana (SOL), which generate yield for validators, might offer a more appealing long-term return profile.
In the interim, companies are exploring ways to leverage Bitcoin.
On Sept. 25, the largest asset manager in the world, BlackRock, submitted a filing to register a Delaware trust company for a Bitcoin Premium Income ETF. Bloomberg ETF analyst Eric Balchunas noted that the proposed fund would generate yield by writing covered call options on Bitcoin futures and collecting the option premiums.
Coinbase introduced a Bitcoin Yield Fund in May, providing institutional investors outside the US with the opportunity to earn yield on BTC holdings. The fund aims for an annual net return of 4% to 8% for its participants.
During the Token2049 event this year, Chow expressed that Bitcoin could be staked to secure networks, and he expects thousands of Bitcoin to transition into proof-of-stake ecosystems like Solana in the future.
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