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$71 Million: Galaxy Digital Sells Stake in EOS Blockchain Maker Block.One

Galaxy Digital, the crypto service provider financial institution based by former hedge fund supervisor Michael Novogratz, has obtained $71.2 million after promoting its shares in Block.one, the maker of the EOS blockchain.

Galaxy Digital stated in an announcement on Might 21 that it closed the transaction on Monday after a young provide for its place in Block.one was made on April 18. The agency claims it made a 123 p.c return on the realized funding and following the transaction, its remaining shares in Block.one “will now not preserve a cloth funding place.”

“The acceptance of Block.one’s tender provide mirrored a call to rebalance the portfolio to take care of an applicable stage of diversification after the place elevated as a consequence of its substantial outperformance relative to the rest of the portfolio,” Novogratz stated within the launch.

Galaxy Digital added it should nonetheless companion with Block.one on different companies such because the Galaxy EOS VC Fund, which primarily backs startups which are growing purposes on the EOS blockchain community. Galaxy Digital and Block.one entered a three way partnership in January 2018 to launch the EOSIO Ecosystem Fund with $325 million.

In July of final 12 months, Block.one obtained funding from quite a few big-name traders equivalent to PayPal co-founder Peter Thiel and Bitmain co-founder Jihan Wu.

Galaxy Digital’s exit comes as a part of Block.one’s buyback program of 10 p.c of its firm shares.

In accordance with a report from Bloomberg on Wednesday, Block.one’s buyback provide values itself at round $2.three billion, up almost 66 instances from what it was valued at in a 2017 seed funding spherical. The repurchase value for the buyback is round $1,500 per share. It was supplied at $22.5 per share through the 2017 spherical.

The report added that Block.one had about $three billion in property together with money and investments on the finish of February, based mostly on a March 19 electronic mail Block.one despatched to shareholders and seen by the information outlet. Block.one can be holding as many as 140,000 bitcoin, the report additional stated.

Michael Novogratz picture by way of CoinDesk

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