Major Bitcoin-backed treasury expansion
Zeta Network Group has secured a substantial $231 million investment that will directly expand its treasury using Bitcoin-based assets. The company announced a private investment in public equity deal totaling approximately $230.8 million, with the proceeds being paid in either Bitcoin or SolvBTC rather than traditional U.S. dollars.
This capital infusion, expected to close on October 16, represents a strategic move to strengthen the company’s financial position using digital assets. The structure involves issuing Class A ordinary shares and one-for-one warrants, with securities sold together at $1.70 per unit. Each warrant carries an exercise price of $2.55 per share, creating what the company describes as a structured financing mechanism.
Bitcoin as treasury foundation
What makes this deal particularly interesting is the payment structure. Instead of receiving cash, Zeta Network will take payment in either Bitcoin directly or SolvBTC, which is a Bitcoin-backed yield-generating token. This approach reflects the company’s conviction in Bitcoin’s long-term fundamentals, even amid recent market volatility.
Patrick Ngan, Chief Investment Officer at Zeta Network Group, explained the thinking behind this move. “By integrating SolvBTC into our treasury, we’re enhancing financial resilience with an instrument that combines Bitcoin’s scarcity with sustainable yield,” he said. “It’s a measured, institutional approach to growth.”
SolvBTC’s institutional appeal
SolvBTC represents a new category of Bitcoin-based financial instruments designed specifically for corporate treasury applications. Each token is fully collateralized 1:1 with Bitcoin held under regulated custody, with reserves verified on-chain. This structure addresses the transparency and compliance requirements that institutional investors typically demand.
The token provides companies with Bitcoin exposure while potentially earning yield, moving beyond simple passive holding. It’s essentially bridging the gap between traditional corporate treasury management and on-chain infrastructure.
Broader strategic direction
Zeta Network is building what it describes as a Bitcoin-centric institutional finance platform. The company’s operations aim to integrate digital-asset treasury management, Bitcoin liquidity aggregation, and sustainable mining operations. Being listed on Nasdaq provides a regulated framework for these activities, which might help address some of the compliance concerns that have traditionally kept institutional investors away from crypto.
This deal comes at a time when corporate treasuries are increasingly exploring digital asset strategies, though most have remained cautious. The size of this investment – over $230 million – suggests growing confidence in Bitcoin-based treasury solutions among institutional players. It’s worth watching whether this becomes a trend or remains an outlier in corporate finance strategies.
While the approach seems innovative, only time will tell if Bitcoin-backed treasury instruments become mainstream or remain niche solutions. The market will be watching closely to see how this strategy performs through different market cycles.
