Overstock’s tZero Blockchain Security Token Offering Raises $134 Million
Overstock, a wildly popular company, is the parent company of tZero. It’s subsidiary recently held a security token offering and raised an impressive $134 million in the process. One of the primary investments in the venture was made by GSR Capital, a Hong Kong-based equity firm.
When it comes to tZero’s token sale, CEO Patrick Byrne stated that the company “did the very best we could . . . eventually we went to Asia. In Asia it was quite different. The first three people we met . . . all said ‘we’d take $60 million’ [but] it proved extremely difficult to get money out of Asia for many reasons.” And that “[t]hat’s what slowed things down so much [concerning the token sale.”
By the end of the token sale, the platform raised “$134 million in aggregate consideration” and that the sum “includes $30 million from repayment of intercompany debt between tZero and overstock.”
Bryne added that the funding will support tZero’s efforts, especially when added to the additional sum provided by GSR Capital.
“When GSR completes its planned investments, we should have over half-a-billion dollars. We believe this will provide ample capitalization with which to build a company that can upend global capital markets.”
The news concerning the investment has led Overstock shares to soar by 21 percent. Certainly, Overstock investors and those looking forward to tZero’s progression must be happy.