Overstock.com subsidiary tZero raised $134 million in its security token offering, the company said Thursday.
The announcement – revealed as part of Overstock's second-quarter results – was paired with a separate disclosure revealing that Hong Kong-based equity firm GSR Capital has agreed to invest as much as $400 million in both tZero and Overstock. TZero said earlier this week that it had completed its token sale, though the firm originally had set a goal of raising $250 million through the offering.
Specifically, the deal would see GSR acquiring up to $270 million in tZero equity – at a valuation of $1.5 billion – as well as up to roughly $104 million in Overstock shares. As well, GSR has agreed to buy $30 million worth of tZERO Security Tokens from Overstock, according to statements.
Overstock first announced GSR's intention to purchase equity in the firm in June 2018, according to a press release. At the time, Overstock said GSR would purchase $160 million in tZero security tokens.
The company said that it ended its sale "raising $134 million in aggregate consideration," adding that "this sum includes $30 million from repayment of intercompany debt between tZero and Overstock."
GSR is purchasing the same security tokens from Overstock that Overstock bought from tZero as part of "a repurchase agreement," according to Thursday's press release.
CEO Patrick Byrne said that the funding would help support tZERO's efforts, particularly when accounting for the amount kicked in by GSR.
"When GSR completes its planned investments, we should have over half-a-billion dollars," Byrne wrote in a statement Thursday. "We believe this will provide ample capitalization with which to build a company that can upend global capital markets."
CoinDesk is monitoring this developing story.
Image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Overstocktoken saletzeroSecurity Tokens
Coinbase Adds First Ethereum Token to Professional Trading Platform
Crypto exchange startup Coinbase is adding the 0x protocol token to its professional trading platform, Coinbase Pro.
Announced Thursday, the exchange said in a blog post that it had begun accepting
SpankChain Says Hacker Returned Stolen Crypto Funds
A hacker who stole 165.38 ETH from the SpankChain platform has returned the funds.
The payment platform focused on the adult industry announced Thursday that the hacker, who stole the funds from th
Korea's Largest Bitcoin Exchange Sells Stake in $350 Million Deal
Bithumb, currently the largest cryptocurrency exchange in South Korea by trading volume, just confirmed it has sold more than 38 percent of its total ownership to a blockchain consortium based in Sing
Nevada's Utilities Agency Eyes Blockchain for Energy Credit System
The Public Utilities Commission of Nevada, a government agency charged with supervising and regulating power utility services in the state, is looking to implement blockchain for its energy credit tra
Fake News Site Used New Zealand Prime Minister to Pump Bitcoin Startup
A fake news site has used the likeness of New Zealand Prime Minister Jacinda Ardern to promote articles on Facebook aimed to pump a crypto startup.
Local media source Stuff reported Friday that sev
FinCEN Blasts Iran's 'Malign' Use of Crypto to Bypass Economic Sanctions
A U.S. regulator is urging domestic exchanges to help prevent the Iranian regime from using cryptocurrency to bypass economic sanctions.
The Financial Crimes Enforcement Network (FinCEN) published
3 Bitcoin Price Factors That Suggest Bears Are in Charge
The prospect of a deeper drop in bitcoin prices has increased, price-volume analysis indicates.
The world's most valuable cryptocurrency, which had been trading sideways since September 22, fell sh
Leading Auction House Christie's to Record Art Sales on a Blockchain
London-based Christie's, one of the oldest and most noted art auction houses in the world, is turning to blockchain tech to securely store sales and provenance data.
The firm, which has a history g