GSR Capital, a Chinese private equity firm is planning to develop what will turn out to be the largest ever single investment in a blockchain platform. The investment by GSR Capital will get about 3.1 million shares of US-based Overstock, amount to about 10 percent in the total shares of the firm.
As stated in a letter of intent, GSR Capital will invest about $270 million to get 18 percent of tZero platform in at the beginning of the investment. Then, the firm will pay another $104.55 million for the already stated 10 percent share in Overstock.
The platform tZero is a subsidiary of Overstock that allows the trading of public and private securities released on a blockchain. In tZero’s ICO, GSR Capital will hopefully invest an additional $30 million as an extra investment, amounting to $134 million.
As a whole, the total amount involved in this investment could amount to $404 million, increasing the valuation of tZero to $1.5 billion as early as December 15, 2018.
According to Patrick Byrne, the executive chairman and CEO of Overstock.com, noted that independent letters of intent were signed by GSR and tZero, and GSR and Overstock.
Even though headquartered in the United States, the challenges are making capital at home as a primary reason why offshore investments seem to be taking the forefront in terms of the firm’ capitalization processes.
“U.S. capital is, to be honest, they’re gun shy on this whole blockchain issue, and I’m sorry to say the US is not the leading country in the world”, says Byrne.