Tuesday, 02 January 2024 12:17 GMT

Zeta Network Secures $230M In Bitcoin-Backed Private Investment Sale


(MENAFN- Crypto Breaking) A recent funding round has seen Zeta Network Group secure approximately $230.8 million through a private share issuance, marking a significant development in the evolving landscape of crypto treasury strategies. The company received investments denominated in Bitcoin and SolvBTC, a wrapped Bitcoin -backed token issued by Solv Protocol. This move underlines the growing trend of integrating Bitcoin into traditional wealth management and DeFi frameworks, aiming to enhance financial resilience amid volatile markets.

  • Zeta Network raises $230.8M via private share sale, accepting Bitcoin and SolvBTC
  • The funds strengthen Zeta's balance sheet with Bitcoin-backed assets as part of their treasury strategy
  • Solv Protocol's SolvBTC facilitates Bitcoin yield and liquidity strategies for institutional use
  • Emerging Bitcoin yield strategies attract attention amid shifting digital asset management approaches
  • Major firms like BlackRock and Coinbase are exploring crypto yield and Bitcoin income funds

Zeta Network Group announced on Wednesday the successful completion of a private share sale that raised about $230.8 million, with investors paying in Bitcoin (BTC ) or SolvBTC - a Bitcoin-backed token issued by Solv Protocol. Under the terms, investors received newly issued Class A ordinary shares along with warrants granting the right to purchase additional shares at $2.55 each. Each share and warrant bundle was sold for a combined price of $1.70.

According to Zeta, this capital infusion will bolster its balance sheet with Bitcoin-based assets, aligning with its broader treasury and financial resilience goals.“By integrating SolvBTC into our treasury, we're enhancing financial resilience with an instrument that combines Bitcoin's scarcity with sustainable yield,” said Patrick Ngan, Zeta's chief investment officer. The deal is expected to close on Thursday, pending final approval.

Solv Protocol's platform permits onchain Bitcoin asset management, issuing SolvBTC - a 1:1 wrapped Bitcoin token aimed at institutional investors and DeFi strategies that seek yield and liquidity. Ryan Chow, CEO of Solv Protocol, emphasized the shift among listed entities:“They are redefining what it means to hold Bitcoin productively,” he said.

Related: Solv introduces RWA-backed Bitcoin yield on Avalanche

Bitcoin Yield Strategies Gain Traction

While Bitcoin remains the dominant asset in digital asset treasuries - a strategy popularized by notable figures like Michael Saylor in 2020 - alternative yield methods are gaining interest. Discussions are emerging about whether proof-of-stake networks such as Ethereum (ETH ) or Solana (SOL ), which generate rewards for network validators, could offer superior long-term yields compared to holding Bitcoin.

The interest in deploying Bitcoin for productive use persists. On September 25, BlackRock , the world's largest asset manager, filed to establish a Delaware trust for a Bitcoin Premium Income ETF. Bloomberg ETF analyst Eric Balchunas noted that this fund would aim to generate yield by writing covered call options on Bitcoin futures, collecting premiums in the process.

Source: Eric Balchunas

Additionally, Coinbase introduced a Bitcoin Yield Fund in May, providing institutional investors outside the U.S. with exposure to Bitcoin-generated yields, targeting annual net returns between 4% and 8%.

During the recent Token2049 event, Ryan Chow highlighted the potential for Bitcoin to be staked within proof-of-stake ecosystems, suggesting a future where thousands of Bitcoin could participate in networks like Solana , enhancing the utility and yield opportunities of the foundational cryptocurrency.

As the crypto markets mature, more institutions are exploring ways to generate income from their Bitcoin holdings through DeFi and yield strategies, signaling a broader shift toward more sophisticated crypto treasury management approaches.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

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