Zeta Raises $230 Million Through Bitcoin-Backed Stock Sale

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Strengthening Corporate Finances by Leveraging Bitcoin (BTC) and SolvBTC

Source: Blockstreet reporter Ha-yeon Jeong
Source: Blockstreet reporter Ha-yeon Jeong
Nasdaq-listed Zeta Network Group announced on the 16th that it has raised approximately $230.8 million (KRW 327.13592 billion) through a private equity sale in which investors paid in Bitcoin (BTC) and SolvBTC, a wrapped Bitcoin-backed token issued by Solv Protocol.

In this transaction, investors received newly issued Class A common stock and warrants, with the option to purchase additional shares at a price of $2.55 per share. Each share and warrant were sold for a total of $1.70.

Zeta Network explained that this private placement represents a continuation of its strategy to integrate Bitcoin-based assets into its treasury and strengthen its financial resilience. Chief Investment Officer (CIO) Patrick Nguan stated, "By integrating SolvBTC into our treasury, we are strengthening our financial resilience by creating a financial product that combines Bitcoin's scarcity with sustainable yield."

Zeta Network is a digital infrastructure and fintech company developing an institutional Bitcoin platform. The transaction is expected to close on Thursday, pending fulfillment of closing requirements.

Solv Protocol is an on-chain cryptocurrency asset management platform that issues SolvBTC, a 1:1 wrapped Bitcoin-backed token designed for institutional investors. CEO Ryan Zhou stated, "We're redefining what it means for publicly traded institutions to hold Bitcoin productively."

Bitcoin yield strategies are gaining traction. Bitcoin remains a core asset in corporate digital asset vaults (DATs), and BlackRock applied for registration of a Bitcoin premium income exchange-traded fund (ETF) with a Delaware trust company on the 25th of last month. Bloomberg ETF analyst Eric Valtunas stated that the proposed ETF would generate income by writing covered call options on Bitcoin futures, collecting the option premium.

Coinbase also launched a Bitcoin Yield Fund in May, providing non-US institutional investors with exposure to Bitcoin yield. The fund targets an annual net return of 4-8%. At the Token2049 event, CEO Ryan Chow stated that staking Bitcoin can enhance network security and that he expects thousands of Bitcoins to flow into proof-of-stake (PoS) ecosystems like Solana (SOL) in the future.

Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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