Zeta Network Group stock surges after $230M private placement deal

Published 15/10/2025, 14:38
© Reuters

Investing.com -- Zeta Network Group (NASDAQ:ZNB) stock jumped 6.5% in premarket trading Wednesday after the company announced a private placement agreement worth approximately $230.8 million.

The deal involves the sale of Class A ordinary shares and warrants at a combined offering price of $1.70 per share. Each warrant will allow the purchaser to buy one Class A ordinary share at an exercise price of $2.55. The transaction, expected to close on October 16, 2025, will be paid in Bitcoin or SolvBTC, a Bitcoin-backed token issued by Solv Protocol.

This private placement aims to strengthen Zeta’s balance sheet with a Bitcoin-backed, yield-generating instrument. The company executed the deal during market volatility, demonstrating its confidence in Bitcoin’s long-term value and adopting a counter-cyclical treasury management approach.

"This is a strategic balance-sheet allocation that reinforces Zeta Network Group’s long-term financial position," said Patrick Ngan, Chief Investment Officer at Zeta Network Group. "By integrating SolvBTC into our treasury, we’re enhancing financial resilience with an instrument that combines Bitcoin’s scarcity with sustainable yield. It’s a measured, institutional approach to growth."

SolvBTC is fully collateralized 1:1 with Bitcoin held under regulated custody and verified through on-chain proof-of-reserves. The transaction represents Zeta’s initial step in a broader collaboration with Solv Protocol, establishing a framework for how tokenized Bitcoin instruments can participate in regulated capital markets.

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