Overstock Surges 20% After Hours Over Blockchain Subsidiary Investment


Overstock (OSTK) shares surged more than 20% Thursday after the company revealed that its subsidiary tZero, a blockchain platform for capital markets, has secured a $270 million investment from GSR Capital (GSR), a private equity firm organized in Hong Kong.

The investment was made at a $1.5 billion valuation, giving GSR a roughly 18% stake in the company with an option to purchase $30 million worth of tZero security tokens from Overstock.

This news comes a little over a month since GSR first signed a letter of intent to purchase $160 million in tZero Security Tokens.

In a recent statement, tZERO CEO Saum Noursalehi shared his excitement from bringing on GSR as a strategic investor.

We are honored to have GSR Capital as a strategic investor. The tokenization of securities has the potential to disrupt global capital markets responsible for moving hundreds of trillions of dollars. Together with our partners, we will globalize our blockchain-based platform, bringing more efficiency, liquidity, and trust to capital markets.

Wall Street definitely sees the latest investment news as a sign that Overstock’s¬†blockchain focus is beginning to pay off. The stock price is currently up over 100% in the past 12 months.

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