Overstock (NASDAQ:OSTK), an e-commerce company, has announced an investment in tZERO, a digital asset issuance and trading platform. tZERO was once a wholly owned subsidiary of Overstock.
In a corporate release, Overstock announced that it had completed the second tranche of a previously announced investment in tZERO. The round was led by the Intercontinental Exchange, Inc. (NYSE: ICE) – the parent company of the New York Stock Exchange.
Overstock has invested, in aggregate, an additional $15 million through Series B financing. Overstock funded the first tranche of $7.5 million in February of this year. Overstock funded the second and final tranche of the investment this past week (August 22, 2022).
Overstock CEO Jonathan Johnson said the investment was indicative of their commitment to tZERO:
“Overstock was an early advocate for accelerating the adoption of blockchain technology, particularly in capital markets, and we have long supported tZERO in doing that. We continue to believe in the tZERO team and its efforts to revolutionize and democratize capital markets.”
tZERO’s mission aims to democratize access to capital markets with a more efficient, accessible, and transparent marketplace. tZERO is a pioneer in the transition to digital securities.
tZERO is a portfolio company of Medici Ventures, L.P., a blockchain-focused fund. The general partner of that fund is an entity affiliated with Pelion Venture Partners. Overstock.com, Inc. is the sole limited partner of Medici Ventures, L.P. and holds a direct minority interest in tZERO.
After the investment, ownership by Overstock in tZERO is approximately 55%.