Overstock’s tZero gains $5M through Equity Stake Sale

Overstock.com, the online retailer, had its blockchain subsidiary tZERO manage to raise an impressive $5 million. The subsidiary managed to do this through an equity stake sale.

GoldenSand Takes A Stake

The news was announced on Tuesday, with tZERO stating that GoldenSand Capital, formerly known as GSR Capital, bought a stake in the company. GoldenSand Capital itself is a private equity firm based within Hong Kong.

Sonny Wu stands as the chairman of GoldenSand Capital, and gave a public statement about the matter as a whole. Wu stated that tZERO is building a capital markets platform that is well and truly the next generation of its kind. This platform will be capable of trading, tokenizing, and settling digital securities. As such, Wu stated that GoldenSand Capital is pleased to be teaming up with tZERO in order to help expand the capacity of this platform.

Wu went further, stating that GoldenSand is planning to continue its collaboration with tZERO, especially in terms of strategic opportunities. Wu noted that his company had shown interest in sharing its wealth of connections in the industry all across Asia with tZERO, using its tokenization protocol technology in turn.

Longstanding Agreements

As it stands now, however, it’s not entirely clear what tZERO will do with this fresh load of capital. While the media has reached out to the firm to try and get a statement from it, they have yet to respond at the time of writing.

This isn’t the first time tZERO has been trying to raise capital, however. Back in August of 2018, the firm managed to raise an impressive $134 million through a security token offering, or STO. However, this wasn’t the planned amount, as tZERO had initially planned on raising as much as $250 million through this STO. During this time, an agreement was made between GSR Capital, Overstock, and tZERO, one which GSR capital agreed to invest up to $400 million into both these firms.

Plans Being Delayed

This exchange, going by the name Boston Security Token Exchange, or BSTX, is a joint venture with BOX digital. However, the US Securities and Exchange Commission, or SEC, has opted to delay the decision of rejecting or approving BSTX. This was due to a few policy and legal issues.