GSR Capital to invest $270m in Overstock blockchain subsidiary
Shares in e-commerce retailer Overstock.com soared on Thursday after Hong Kong-based private equity company GSR Capital announced a large investment in the company’s tZERO blockchain subsidiary.
GSR Capital will buy $30m worth of tZERO tokens from Overstock and will also invest up to $270m in the company at a valuation of $1.5bn – giving GSR a stake of 18% in tZERO.
Overstock shares rose 4.5% to $38.60 in New York on Thursday, and were up more than 17% in pre-market trade on Friday.
TZERO operates a blockchain platform that focuses on pre-trade financing, trade accounts and post-trade services, including clearing and reconciliation.
Chief executive of tZERO Saum Noursalehi said: “We are honored to have GSR Capital as a strategic investor.
He added: “The tokenization of securities has the potential to disrupt global capital markets responsible for moving hundreds of trillions of dollars.
“Together with our partners, we will globalize our blockchain-based platform, bringing more efficiency, liquidity, and trust to capital markets.”
TZERO began its initial coin offering process in December 2017, attracting strong interest. The company announced the closing of its token offering this week, having raised $134m.