Zeta Network (ZNB) shares soared on Sept. 4 in tandem with a sharp increase in the price of Bitcoin (BTCUSD) from just below $109,000 on Sept. 2 to highs above $112,000 on Thursday, Sept. 4.
Formerly known as Color Star Technology, an online entertainment and education company, ZNB has recently changed its name and ticker symbol and made a strategic pivot to crypto mining, thematically tying its share price to BTC.
While Zeta stock reversed much of its intraday gains by market close, it was seen trading up nearly 150% at one point on Thursday. Even at the time of writing, it’s up some 20% versus recent low.
Is a Crypto Pivot a Positive for Zeta Stock?
The aforementioned shift to cryptocurrency mining could prove a material tailwind for ZNB stock since it positions the company within a high-growth, high-interest industry, attracting speculative capital and aligning its equity narrative with Bitcoin momentum.
Management decided in favor of rebranding from Color Star last month to signal a decisive break from its legacy entertainment model, aiming to capitalize on investor appetite for digital assets.
In short, by entering crypto mining, Zeta Network has tapped into scalable revenue potential and market buzz, offering a fresh story for traders and strategic reset for long-term growth.
Why ZNB Shares Remain Unattractive in 2025
Despite its bold, strategic pivot to crypto mining, Zeta Network remains a high-risk micro-cap stock with glaring red flags.
Its recent 25-for-1 reverse stock split may have temporarily improved share price optics, but the move in general often signals nothing more than an attempt to meet listing requirements, not strength.
Additionally, ZNB shares lack Wall Street coverage, leaving investors without credible forecasts or institutional oversight. Meanwhile, financials are dire too. Zeta posted a net loss of $26.9 million on just $2.8 million in revenue in its last annual report filed for the fiscal year ended June 30, 2024.
With no clear path to profitability, minimal insider ownership, and extreme volatility (beta 2.52), Zeta stock trades more like a speculative shell than a viable investment.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
