GSR Capital, a China based private equity firm has announced that it has signed a letter of intent to acquire an 18% stake in blockchain startup tZero by investing $270 million, representing the largest investment made in a platform created to trade blockchain-issued assets. GSR has also confirmed that it will spend another $104.55 million to garner a 10% stake in Overstock, the parent company of tZero.
Furthermore, the investment firm has also pledged another $30 million in tZero’s initial coin offering (ICO). The funding would take the total investment to $404 million, reflecting the valuation of tZero at $1.50 billion, exceeding the $1.07 billion valuation commanded by Overstock.com.
Notably, the company’s core product is not yet launched. All parties involved in the deal have signed independent letters of intent.
GSR Capital’s chairman and founder Sonny Wu revealed that he is planning to scale the platform globally. It is the first investment of GSR Capital in a public blockchain firm.
Previously, the investment firm is focused on clean energy and electric vehicles. Patrick Byrne, executive chairman of tZero and CEO of Overstock.com, said the money would be spent on establishing more tokenized securities exchanges across the world. Read more from cointrust.com…
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