Zeta Network Group raises $230.8 million in bitcoin-backed deal

NEW YORK - Zeta Network Group (NASDAQ:ZNB) has entered into a securities purchase agreement for approximately $230.8 million in a private placement transaction, according to a press release issued Wednesday. The deal comes as the company, currently valued at $4.25 million in market capitalization, seeks to strengthen its position despite maintaining a healthy current ratio of 1.61.

The agreement includes Class A ordinary shares and warrants at a combined offering price of $1.70 per share and warrant. The warrants will be exercisable at $2.55 per share.

The transaction, expected to close on Thursday, October 16, will be paid in Bitcoin or SolvBTC, a Bitcoin-backed token issued by Solv Protocol that maintains a 1:1 ratio with Bitcoin.

Patrick Ngan, Chief Investment Officer at Zeta Network Group, described the move as "a strategic balance-sheet allocation that reinforces Zeta Network Group’s long-term financial position."

SolvBTC tokens are fully collateralized by Bitcoin held under regulated custody and verified through on-chain proof-of-reserves, according to the company statement.

The private placement comes during what the company characterized as "market turbulence," with Zeta Network Group suggesting the timing reflects a "counter-cyclical approach to treasury management."

The transaction represents Zeta Network Group’s first collaboration with Solv Protocol, potentially establishing a framework for how tokenized Bitcoin instruments can participate in regulated capital markets.

Zeta Network Group describes itself as a digital infrastructure and financial technology company developing a Bitcoin-centric institutional finance platform that combines digital asset treasury management, Bitcoin liquidity aggregation, and Bitcoin mining operations.

The information in this article is based on a press release statement from Zeta Network Group. For deeper insights into ZNB’s financial health and 11 additional exclusive ProTips, visit InvestingPro, where subscribers can access comprehensive financial analysis and real-time valuations.

In other recent news, Zeta Network Group has completed a $15 million registered direct offering with Univest Securities, LLC. The offering involved the sale of 15 million Class A ordinary shares at $1.00 per share, along with pre-funded warrants at a similar price minus an exercise fee of $0.0025 per share. This financial move aligns with Zeta’s recent announcement of the same offering aimed at raising approximately $15 million in gross proceeds. Additionally, Zeta Network Group has formed a strategic partnership with SOLV Foundation, a Bitcoin liquid staking platform, to manage its Bitcoin holdings through a regulated third-party custodian. This partnership will also see the formation of a joint steering committee to explore Bitcoin-centric decentralized finance initiatives. Furthermore, the company, formerly known as Color Star Technology Co., Ltd., has undergone a rebranding, changing its name and ticker symbol to Zeta Network Group and "ZNB," respectively. As part of this transition, a 25-for-1 reverse share split was implemented to reflect its new focus on cryptocurrency mining operations. These developments highlight Zeta Network Group’s strategic efforts in expanding its financial and operational capabilities.

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