GSR Capital set to invest $374.5mn in e-commerce retailer Overstock
The private equity firm, GSR Capital, is set to invest $374.5mn in e-commerce retailer Overstock with $270mn of that figure to be utilised in its blockchain subsidiary tZero, China Money Network reports.
The Hong-Kong based company confirmed that it will own up to a 18% stake in tZero.
tZero primarily focuses on the improvement and development of fintech based on cryptographically-secured, decentralized ledgers which are often referred to as blockchain technologies.
tZero CEO Saum Noursalehi said: “Together with our partners, we will globalize our blockchain-based platform, bringing more efficiency, liquidity, and trust to capital markets.”
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Sonny Wu, chairman of GSR Capital, said: “GSR Capital is very excited to partner with tZERO in its effort to expand the global footprint for blockchain-enabled asset trading including stocks, bonds, commodities, etc.”
“We have a long-term view on how we want to scale this platform on a global basis.”
First established in 2004 by Sonny Wu and Richard Lim, GSR Capital is a member of three independent teams which include GSR Ventures and GSR United Capital, set up by the two partners.
The move will also see the private equity company invest an additional $104.5mn in order to purchase 3.1mn Overstock shares at a 5% reduction to the closing share price on 1 August.
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