Hong Kong Company To Invest Large Amount In Blockchain Startup
Hong Kong-based private company GSR Capital will invest in a tZERO blockchain startup, a subsidiary of American online retailer Overstock.com, CNBC reports.
Following such news, Overstock.com shares jumped in value by 4.47% in the first few hours and their price was $38.6 per share by the time the trading closed.
GSR Capital and Overstock.com entered into an agreement under which the Hong Kong company will acquire tZERO tokens for $30 million, invest up to $270 million in the US corporation, and become the owner of 18% of tZERO and Overstock shares.
Saum Noursalehi, the executive director of tZERO, stated that it was a pleasure to work with GSR Capital and stressed that they will be able to bring their blockchain platform to the global level, increase efficiency, liquidity, and confidence in capital markets in cooperation with the Hong Kong company.
This June, the startup representatives concluded a contract of intent, under which GSR Capital acquired tZERO tokens for $160 million. The price of one token amounted to $10. Besides, the Simple Agreement for Future Equity was signed for tokenized securities for over $168 million.
The representatives of Medici Land Management (MLG), another subsidiary of Overstock.com, previously signed a contract with the government of Zambia, which provides for the collection of information and the creation of a blockchain land resources registry of all types of property.
As previously reported, the VeChain crypto platform entered into an agreement with Japanese mobile operator NTT Docomo to integrate the VeChainThor blockchain into the company's operation.