Zeta Network (ZNB) stock underwent a massive rally on Tuesday after the entertainment and education company announced a partnership with SOLV Foundation, a multi-chain Bitcoin (BTC-USD) liquid staking and institutional-grade structured finance platform. Under the terms of this agreement, Zeta Network will utilize SOLV Foundation’s platform to “maximize the efficiency of its Bitcoin holdings.”
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Samantha Huang, CEO of Zeta Network, said, “This partnership marks a transformative step for the Company, strengthening our Bitcoin treasury strategy and aligning us with one of the most advanced platforms in the Bitcoin liquidity and staking ecosystem.”
Zeta Network will use a regulated third-party custodian for the management of its Bitcoin holdings. That includes depositing Bitcoin from it or its subsidiaries to the SOLV Foundation. There are also plans for Zeta Network and SOLV Foundation to create a Joint Steering Committee made up of senior representatives from both organizations.
Zeta Network Stock Movement Today
Zeta Network stock was up 195.78% in pre-market trading on Tuesday, following a slight gain yesterday. The shares have fallen 97.2% year-to-date and 99.69% over the past 12 months. Today’s news came with heavy trading, as some 92 million shares changed hands, compared to a three-month daily average of about 9.66 million units.
Zeta Network has joined a growing number of companies that are adopting crypto treasury strategies. Many are hoping to emulate the success of Strategy (MSTR), which has seen major gains after dedicating its company to the mining and storage of Bitcoin.
Investors will note that many stocks that announce digital asset treasuries experience massive gains on the news, but have trouble maintaining those elevated prices. That’s something to consider when weighing a stake in ZNB stock on today’s news.
