TZero, Overstock.com’s blockchain subsidiary, raised $134 million in an initial coin offering (ICO) that began last December and was designed to comply with SEC requirements. tZero is an alternative trading system for securities issued on a blockchain that launched in 2015.
It was also announced today that GSR Capital, a Chinese private equity firm, is leading a $270 million investment in tZero. Part of a larger deal, the investment also includes $104 million in Overstock.com stock and $30 million worth of tZero tokens.
The company plans to use the funds to finalize its blockchain alternative trading system (ATS) and build similar platforms in jurisdictions around the world.
tZero CEO Saum Noursalehi said in a statement:
This funding will allow us to globally scale our blockchain capital market platform on a rapid timeline, ushering in an era of trust through technology for the global economy.
Further financial results are scheduled to be announced during an investors call this afternoon. Shares of Overstock.com were trading at around $38 before market’s close on Thursday.
While the ICO is certainly one of the largest to date, tZero originally submitted documents to the SEC to raise as much as $250 million. One possible explanation for the missed goal is regulatory scrutiny that an Overstock representative said the company was still complying with.
In a March filing, Overstock revealed that the SEC had requested “certain documents related to the Offering and the Tokens” as part of its wide-ranging investigation into companies involved in the booming ICO market in 2017.