Galaxy Digital, the crypto merchant bank dedicated to the digital assets, has announced a Partnership update with EOS blockchain maker, Block.one. The Michael Novogratz founded firm has received over $70 million by selling its stake in the blockchain company.
In an announcement on May 21 Galaxy Digital Holdings Ltd said that the company, referred to as the ‘Partnership’, accepted a tender offer in the ordinary shares of Block.one. On Monday the crypto investment bank received $71.2 million for the shares representing a majority of its position. It added that a 123 percent return on realized investment had been made.
Michael Novogratz, CEO and Founder of Galaxy Digital, stated;
“The acceptance of Block.one’s tender offer reflected a decision to rebalance the portfolio to maintain an appropriate level of diversification after the position increased due to its substantial outperformance relative to the remainder of the portfolio.”
He added that they would continue to work with Block.one as a key partner across a number of business lines including the Galaxy EOS VC Fund which invests in companies building on the EOS protocol.
The two companies entered a joint venture in January 2018 to launch the EOSIO Ecosystem Fund with $325 million. Block.one received further investment from a number of big names including PayPal co-founder Peter Thiel and Bitmain co-founder Jihan Wu in July last year.
According to Bloomberg this exit comes as part of Block.one’s buyback program of 10% of its company shares. This could result in returns as high as 6,567% the report added. It continued to state that the firm’s buyback offer values itself at around $2.3 billion. This represents an increase of almost 66 times from what it was valued at in a 2017 seed funding round.
Bloomberg added that Block.one had around $3 billion in assets including cash and investments at the end of February and by March it held 140,000 BTC according to a company email.
EOS Price Reaction
As expected there has been no real reaction on EOS markets as this was an anticipated part of the original investment program by Block.one. On the day the token is trading flat at $6.30 and it has steadily lost ground to Bitcoin over the past few weeks. EOS has made no real independent moves and has mirrored the ebbs and flows of the rest of the crypto markets.
Since the beginning of the big rally in early April, EOS has only managed a gain of 50% whereas Bitcoin has almost doubled. Conversely, rival dApp network Ethereum has surged 80% over the same period.
The post Galaxy Digital Sells Block.One Stake; Will EOS Prices React? appeared first on Ethereum World News.
Comments