Zeta Network Group said Wednesday it raised nearly $230.8 million through a private share sale, with investors paying in Bitcoin (BTC) or solvbtc-a wrapped backed token issued by the solv protocol.
Under the deal, investors will receive newly issued Class A ordinary shares and warrants that allow them to buy additional shares later at $2.55 each. Each pair of shares and warrants was sold at a combined price of $1.70.
According to At Zeta, the arrangement is to bolster its balance sheet with Bitcoin-based assets as part of a broader Treasury strategy. “By integrating SOLVBTC with our Treasury, we are enhancing financial stability with an instrument that combines the scarcity of bitcoin with a sustainable yield,” said Patrick Ngan, Zeta Network’s chief investment officer.
Zeta Network, a digital infrastructure and Fintech company that is building an institutional bitcoin platform, expects the deal to close on Thursday, pending closing requirements.
SOLV Protocol is an Onchain Bitcoin asset management platform that issues SolVBTC, a Bitcoin-backed token designed for institutional use in yield and liquidity strategies.
Ryan Chow, the CEO of SOLV Protocol, said that “listed entities will redefine what it means to hold Bitcoin productively.”
https://www.youtube.com/watch?v=npzqd7tsqmg
Related: SOLV brings Bitcoin-backed yield to Bitcoin on the avalanche blockchain
Bitcoin yield strategies emerge
While Bitcoin remains the primary asset for digital asset treasuries (DATS) – an approach popularized by Michael Saylor in 2020 – Some debate has arisen whether Proof-of-Stake Networks like Ethereum (Eth) or Solana (Sol), which generates yield for validators, may offer a more attractive return profile.
Meanwhile, companies are finding ways to make Bitcoin work.
On September 25, the world’s largest asset manager, BlackRock, filed to register a trust company in Delaware for a Bitcoin Premium Income ETF. Bloomberg ETF analyst Eric Balchunas said The proposed fund will generate yield by writing covered call options on bitcoin futures and collecting option premiums.
Coinbase launched a Bitcoin Yield Fund In May, giving institutional investors outside the US yield exposure on BTC holdings. The fund aims to generate an annual net return of 4% to 8% for holders.
Speaking at this year’s Token2049 event, Chow said Bitcoin could be Staked to secure networks. In the future, he expects thousands of Bitcoins to enter proof-of-stake ecosystems like Solana.
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