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.
The deal will see investors receive Class A Ordinary Shares and Warrants allowing for them to later purchase more shares at $2.55 apiece. The combined selling price for each share-warrant pair was $1.70.
According According to Zeta’s treasury, this arrangement strengthens its balance sheet by incorporating Bitcoin-based assets. “By integrating SolvBTC into our treasury, we’re enhancing financial resilience with an instrument that combines Bitcoin’s scarcity with sustainable yield,” Patrick Ngan is the chief investment officer of Zeta Network.
Zeta Network (a digital infrastructure, fintech, and Bitcoin company) expects to close the deal on Thursday pending final closing requirements.
Solv Protocol, an on-chain Bitcoin asset manager 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
Cryptocurrency yield strategies are 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 filed a Delaware trust registration for the company on Sept. 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 believes that thousands of Bitcoins will be used in proof-of stake ecosystems, such as Solana.
Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib
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Source: cointelegraph.com
