The tZERO platform raised $ 5 million, although the initial deal involved an investment of $ 400 million

The operator of the same name blockchain platform tZERO, a subsidiary of the retail giant Overstock, has closed a $ 5 million financing round from Hong Kong venture capital firm GSR Capital. Initially it was assumed that the company will receive $ 400 million, reports CoinDesk .

Last summer, Overstock and GSR Capital signed an agreement, under which GSR pledged to acquire a stake in tZERO of $ 270 million, Overstock shares for $ 104.55 million and tZERO tokens for $ 30 million. The deal was to be completed in December, but the company asked for it time until February.

Subsequently, the Hong Kong company attracted Makara Capital Singapore Fund for a joint round of $ 100 million, however, the parties failed to close the deal.

As a result, tZERO agreed to release GSR Capital from all previous obligations. Thus, according to the results of the new transaction, the blockchain platform operator received $ 1 million in US dollars, $ 1 million in Chinese yuan and $ 3 million in securities.

Note that in the first quarter of 2019, Overstock's net profit was $ 367 million, which is 17% less than the similar figures for 2018. Nevertheless, the retail giant has sold part of its shares in order, if necessary, to support the blockchain initiative in the absence of sufficient external financing.

Recall that the tZERO platform began work in January of this year, after which the price of its native token has decreased significantly.

In March, tZERO announced plans to launch a mobile application for buying and selling bitcoin.

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