(Yicai Global) Aug. 29 -- GSR Capital, a Chinese private equity firm is set to establish what would become the largest ever single investment in a blockchain platform. The investment by GSR Capital will see it acquire about 3.1 million shares of US-based Overstock, amounting to about 10% in overall shares of the company.
GSR Capital will invest as much as $270 million to acquire 18% of tZero platform in the initial stage of the investment. Afterwards, the company shall pay another $104.55 million for the already mentioned 10% stake in Overstock.
The platform tZero is a subsidiary of Overstock that enables the trading of public and private securities issued on a blockchain. In tZero's ICO, GSR Capital yet plans to inject another $30 million as additional investment, making up the total amount raised to $134 million.
Cumulatively the total amount involved in this transaction could reach $404 million, raising the valuation of tZero to $1.5 billion as early as December 15 2018
This exercise records another milestone for blockchain in its adoption by mainstream establishments. It is the first blockchain experience for GSR Capital in terms of public investment, having been popular for its investments in the areas of electric vehicles and clean energy.