GSR Capital Closes Investment with Overstock’s Security Token Platform

Asia Blockchain Review
May 27, 2019

Hong Kong-based GSR Capital has officially closed on its investment in Overstock.com’s security token trading platform, tZERO, following months of delays as the deal underwent multiple revisions.

However, rather than buying US$30 million of tZERO tokens as previously agreed, the private equity fund invested just US$5 million in tZERO equity in the traditional form. As reported by CoinDesk, the finalized transaction valued the platform at US$1 billion, or half a billion less than in the initial agreement.

Overstock also said Makara Capital, a Singapore fund brought by GSR into the deal, is still conducting its due diligence of tZERO, and may still invest the money it pledged earlier.

Saum Noursalehi, CEO of tZERO, described the US$5 million investment as a “decent offer,” while Overstock stated that it consisted of US$1 million in U.S. dollars, US$1 million in Chinese Renminbi, and US$3 million in “certain securities.”

Originally, the deal with GSR was expected to bring US$404 million to tZERO, but was postponed several times and downsized to US$100 million in March 2019, and then to US$30 million the following month.

Given that tZERO did not obtain as much outside investment as it had initially hoped, it will instead rely on cash from Overstock for the time being, with earlier plans to sell the retail business postponed as well.

Still, tZERO appears to have found a major client with Dubai-based real estate giant Emaar, which has signed a letter of intent to issue tokens on tZERO.

Overstock is also planning to issue more tokenized shares in the long term, with the company possibly going full blockchain, according to Noursalehi.

Source: www.coindesk.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Blockchain: Fine-tuning the Music Industry
Music might be in need of another tech disruption in the form of blockchain.

July 17, 2019

Graph Blockchain Secures Contract with South Korean Transport Ministry
The pilot project is for storing traffic data on a blockchain network as part of the Smart City nati...

July 13, 2019

Hong Kong, a Great Place for Blockchain Startups
It is quite evident that Hong Kong is quite rapidly developing to be a blockchain hub in the region ...

July 12, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us