Companies

GSR Capital closes investment in tZERO; invests $5 million instead of $400 million

May 9, 2019, 6:00PM EDT

Hong Kong-based GSR Capital has closed investment in Overstock’s security token trading platform tZERO, CoinDesk writes. The company received only $5 million in funding. Originally, per the agreement signed last summer, GSR was supposed to invest more than $400 million in tZERO. Afterwards, the funding was lowered to $100 million in March, and it went down to $30 million a month later.

According to Overstock’s CEO Patrick Byrne, GSR was let out of “all previous contracts.” tZERO CEO Saum Noursalehi believes the investment was “a decent offer.” The investment comprises “$1 million in U.S. dollars, $1 million worth of Chinese Renminbi, and $3 million worth of ‘certain securities.’”

Meanwhile, Singaporean fund Makara Capital is conducting due diligence of tZERO. It may still, therefore, invest the full amount.

In order to raise additional funds, Overstock has recently sold some of its stock; if needed, tZERO will get some of those funds, Noursalehi said.