GSR Capital Lowers Its Overstock’s tZERO Investment By 75%, New Talks Say Only $100 Million Possibility

GSR To Cut Overstock’s tZERO Investment By 75%, From $404 Million To $100 Million USD

A Hong Kong-based private equity company called GSR Capital has decided to diminish its investment in Overstock’s tZERO by an incredible 75%. The deal, which was supposed to be finished a long time ago, is now set to be made by a considerably smaller amount of money. Instead of investing a total of $404 million USD, now GSR Capital will only invest $100 million USD in the company.

According to reports, the deal will be finalized in April 2019 and an additional investor has been brought to the table, Makara Capital, an investment company from Singapore. The CEO of Overstock, Patrick Byrne, has described this new player as a key partner of GSR Capital.

Both companies have signed a memorandum of understanding with tZERO this week, which outlines the responsibilities of both companies, including the investment of $100 million USD in common stock and the data set for April, when binding contracts will finally be signed. Also, GSR Capital and Makara will help in tZERO’s Asian expansion, as well as other parts of the world.

Byrne has affirmed that the recent success of tZERO’s new security token makes the company excited to have new partners that will present the company with new challenges and emerging opportunities. He also used the opportunity to say that more information about Overstock’s blockchain products will be shared soon in the 2018 FY Earnings report.

The Negociation So Far

Originally, this deal was supposed to happen on December 15, but the GSR asked for an extension at the time, which led to what we are seeing now. The earlier agreement was three times higher of the current amount of money and it included the purchase of $30 million USD worth of TZEROP tokens. However, the values of the assets have greatly declined since then.

So far, TZEROP is only traded on tZERO’s own trading system and you can buy each token for $3.50 USD and each share is valued at $19 USD. Back in December, tokens were worth $6.6 USD and shares were worth $33 USD.

People who bought the token were awaiting for this partnership for a long time, as they believed it could boost the value of their tokens. This will hardly happen now, though, as this is actually pretty disappointing news and a lot of people will be very disheartened.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide