Zeta Network Secures $230 Million in Private Share Sale with Bitcoin and SolvBTC
Zeta Network Group has announced the successful completion of a private share sale, raising approximately $230.8 million from investors who paid in Bitcoin (BTC) or SolvBTC, a wrapped Bitcoin-backed token issued by Solv Protocol. This innovative approach to fundraising highlights the growing interest in Bitcoin-based assets and their potential for yield generation.
Under the terms of the deal, investors will receive newly issued Class A ordinary shares and warrants, allowing them to purchase additional shares at $2.55 each. The combined price for each share and warrant pair was set at $1.70. This arrangement is expected to strengthen Zeta Network’s balance sheet, incorporating Bitcoin-based assets as part of its broader treasury strategy.
Enhancing Financial Resilience with Bitcoin-Based Assets
Patrick Ngan, Zeta Network’s Chief Investment Officer, emphasized the benefits of integrating SolvBTC into their treasury, stating, “By integrating SolvBTC into our treasury, we’re enhancing financial resilience with an instrument that combines Bitcoin’s scarcity with sustainable yield.” This move underscores the company’s commitment to developing innovative financial solutions that leverage the unique properties of Bitcoin.
Zeta Network, a digital infrastructure and fintech company, is developing an institutional Bitcoin platform. The company expects the deal to be finalized on Thursday, pending the completion of closing requirements. Solv Protocol, an on-chain Bitcoin asset management platform, issues SolvBTC, a 1:1 wrapped Bitcoin-backed token designed for institutional use in yield and liquidity strategies.
Emergence of Bitcoin Yield Strategies
The rise of Bitcoin yield strategies has sparked debate over the potential long-term return profiles of proof-of-stake networks like Ethereum (ETH) or Solana (SOL), which generate yield for validators. However, companies are exploring ways to put Bitcoin to work, generating yield and enhancing its productive potential.
For instance, BlackRock, the world’s largest asset manager, filed to register a Delaware trust company for a Bitcoin Premium Income ETF on September 25. According to Bloomberg ETF analyst Eric Balchunas, the proposed fund would generate yield by writing covered call options on Bitcoin futures and collecting the option premiums.
Coinbase launched a Bitcoin Yield Fund in May, offering institutional investors outside the US exposure to yield on BTC holdings. The fund aims to generate an annual net return of 4% to 8% for holders. Speaking at the Token2049 event, Ryan Chow, CEO of Solv Protocol, highlighted the potential for Bitcoin to be staked to secure networks, with thousands of Bitcoin expected to enter proof-of-stake ecosystems like Solana in the future.
As the Bitcoin ecosystem continues to evolve, the emergence of yield strategies and innovative financial solutions is expected to play a significant role in shaping the future of digital assets. For more information, visit the original source link: https://cointelegraph.com/news/zeta-network-raises-230m-bitcoin-private-sale?utm_source=rss_feed&utm_medium=rss_tag_bitcoin&utm_campaign=rss_partner_inbound
