Zeta Network partners with Solv Bitcoin to build out a $230 million BTC and SolvBTC treasury

Zeta Network Group (ticker ZNB) is partnering with Solv Protocol as it looks to build out its Bitcoin treasury.

Zeta is looking to close a $230 million private placement on Oct. 16 to fund this initiative, according to an announcement on Wednesday. In exchange for stock and warrants, Zeta will receive BTC and SolvBTC, a 1:1 wrapped bitcoin-backed token issued by Solv Protocol.

"Entered into during a period of market turbulence, the transaction highlights Zeta Network Group’s conviction in Bitcoin’s long-term fundamentals and its disciplined, counter-cyclical approach to treasury management, mirroring strategies adopted by leading Bitcoin treasuries that accumulate during market downturns," Zeta wrote in a statement.

ZNB is down about 9.7% on Wednesday, trading hands at $1.82, according to Google Finance.

Solv Protocol is an onchain Bitcoin reserve providing institutional mechanisms for the productive use of Bitcoin holdings. SolvBTC, the flagship asset in Solv's suite of treasury and capital-market products, enables retail and institutional investors to earn yield on their BTC holdings.

It is unclear how many BTC or SolvBTC tokens Zeta is looking to hold. However, if its Private Investment in Public Equity (PIPE) agreement went entirely towards holding bitcoins, it would rival Bitdeers' 2,061 BTC, worth about $230 million, making it the 35th largest Bitcoin treasury.

"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," Zeta Chief Investment Officer Patrick Ngan said in a statement.

The firms intend to continue to collaborate, according to the press release.

Solv Protocol is backed by Binance Labs, Blockchain Capital, Laser Digital, and OKX Ventures, among other investors.