Zeta Network Group announced on Wednesday it had raised $230.8 millions through a private stock sale. Investors paid in Bitcoin.BTC) or SolvBTC — a wrapped Bitcoin-backed token issued by Solv Protocol.
Investors will be given newly-issued Class A ordinary share and warrants that allow them to purchase additional shares at $2.55 per share later. The combined selling price for each share-warrant pair was $1.70.
According Zeta says that the agreement will help strengthen their balance sheet as Bitcoins are part of an overall treasury plan. “By integrating SolvBTC into our treasury, we’re enhancing financial resilience with an instrument that combines Bitcoin’s scarcity with sustainable yield,” Patrick Ngan was the Chief Investment Officer of Zeta Network.
Zeta Network (a digital infrastructure, fintech, and Bitcoin company) expects to close the deal on Thursday, subject to closing requirements.
Solv Protocol, an onchain Bitcoin Asset Management Platform, issues SolvBTC – a wrapped Bitcoin-backed 1:1 token for use by institutions in yield and liquidity strategy.
Ryan Chow is the CEO of Solv Protocol. “listed entities are redefining what it means to hold Bitcoin productively.”
Related: Solv brings RWA-backed Bitcoin yield to Avalanche blockchain
The Bitcoin Yield Strategy is emerging
While Bitcoin remains the primary asset for digital asset treasuries (DATs) — a strategy popularized by Michael Saylor in 2020 — some debate has emerged over whether proof-of-stake networks like Ethereum (ETHSolanaSOL(), which provide yield to validators could have a better long-term performance.
Meanwhile, businesses are looking for ways to make Bitcoin work.
BlackRock, the largest asset manager in the world, registered a Delaware Trust Company for an unnamed client on September 25. Bitcoin Premium Income ETF. Eric Balchunas, Bloomberg ETF Analyst said This fund generates yields by selling covered call option contracts on Bitcoin futures, and then collecting premiums.
Coinbase launches a new service Bitcoin Yield Fund Institutional investors in the US and abroad will be able to access BTC’s yield in May. The fund aims to generate an annual net return of 4% to 8% for holders.
Chow stated that Bitcoin is a possibility at Token2049, which was held this year. staked to secure networks. He expects that in the future thousands of Bitcoin will enter Proof-of-Stake eco-systems such as Solana.
Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib
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Source: cointelegraph.com
