In December, GSR Capital is planning to invest USD270m in blockchain startup tZero, a subsidiary of the US based e-commerce retailer Overstock.com, according to Forbes on August 9. With the proceeds, tZero will launch multiple tokenized securities exchanges worldwide, aiming to enable transparent, real-time securities lending. If the investment is disclosed successfully later this year as scheduled, it would be the largest single investment in a blockchain startup, and will give the company a valuation at USD1.5bn.
This will be GSR Capital’s first public investment in the fast-growing blockchain industry, as the PE firm has been primarily focusing on the EV industry over the past few years. Previously in February, GSR invested USD4.5bn in Turkey-based battery maker Zorlu. Earlier in March, the company also invested USD500m in Sweden-based EV producer National Electric Vehicle Sweden (NEVS). Other than the USD270m investment in tZero, GSR also plans to further invest up to USD105m in the startup’s parent company Overstock.com for a 10% stake. Upon the completion of the deal with GSR, Overstock.com will be valued less than its affiliate, even though the latter company hasn’t even launched its flagship product.