Zeta Network Announces $231M BTC Investment One Week After Securing $15M Through Direct Offering

ccn.comPublished on 2025-08-14Last updated on 2025-10-15

Key Takeaways
  • Zeta Network Group announced a $230.8 million private placement payable in Bitcoin.
  • The announcement follows a $15 million direct offering completed on October 9.
  • The investment comes just days after the Oct. 10 crypto market flash crash.

Zeta Network Group, formerly known as Color Star, announced via press release on Oct.15 that it had entered into a securities purchase agreement for a private placement worth approximately $230.8 million, payable in Bitcoin.

The deal comes just one week after the firm revealed it had secured an additional $15 million through a registered direct offering.

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Bitcoin Investment

The new transaction, expected to close on Oct. 16, 2025, involves the sale of the company’s Class A ordinary shares and accompanying warrants to purchase an equal number of shares.

Zeta Network stated that the transaction would strengthen its balance sheet and enhance net asset value through the addition of SolvBTC, a Bitcoin-backed instrument designed for institutional adoption.

According to the press release, SolvBTC is fully collateralized 1:1 with Bitcoin held under regulated custody and verified on-chain.

“This is a strategic balance-sheet allocation that reinforces Zeta Network Group’s long-term financial position,” said Patrick Ngan, the firm’s Chief Investment Officer.

“By integrating SolvBTC into our treasury, we’re enhancing financial resilience with an instrument that combines Bitcoin’s scarcity with sustainable yield,” he added.

Days After Oct. 10 Flash Crash

The investment comes just days after a period of what the company described as “market turbulence” that left the crypto markets reeling.

On Friday, Oct. 10, a 100% tariff threat on China by President Donald Trump sent shockwaves through global markets, leading to nearly $19 billion in crypto positions being liquidated within hours.

Bitcoin fell from $125,000 to $102,000, while Ethereum dropped from $4,300 to below $3,600, and other altcoins also experienced sharp declines.

The Alternative.me Crypto Fear & Greed Index also fell to a “Fear” level of 27 on Saturday, Oct.12.

Zeta Network said the timing of the new transaction reflected the firm’s “conviction in Bitcoin’s long-term fundamentals” and its “disciplined, counter-cyclical approach to treasury management.”

$15 Million Share Buy

The announcement comes just days after Zeta Network announced it had secured  $15 million through a registered direct offering of 15 million Class A ordinary shares at $1 per share.

The offering closed on Oct. 9, 2025, with proceeds allocated for working capital and general corporate purposes.

Zeta also agreed to a 45-day restriction on issuing additional shares following the completion of the offering.

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