Overstock has a cryptocurrency unit called tZERO as well as a subsidiary named Medici Ventures that invests in blockchain companies.
GSR Capital, a Hong Kong investment company, will invest $270 million in tZERO. The rest will be in shares of Overstock.
GSR Capital plans to buy $30 million in tZERO security tokens, a form of crypto investments backed by partial ownership of other assets such as stock and bonds.
The GSR Capital deal values tZERO at $1.5 billion. tZero is 80% owned by Medici Ventures. The tZero valuation is higher than Overstock's current market valuation.
tZero owns brokers dealers and is processing 18 million orders per day
tZero has a modular, adaptable platform which integrates with trade participants to create a real-time, authenticated, immutable ledger. After several years of development, tZERO has positioned itself to capture the fast-growing digital securities market. To date, tZERO has the only platform that has ever traded a digital security, and they are working diligently to build a token trading system to trade tokenized securities.