Overstock.com’s stock price jumped almost 13 percent Friday after it announced its tZERO unit signed a letter of intent with GSR Capital for $160 million worth of tZERO Security Tokens for $10 each as part of a Simple Agreement for Future Equity, or SAFE.

The tokens run on the Ethereum blockchain as ERC-20 tokens but buying them won’t be giving GSR Capital any voting rights in tZERO. However, the move does entitle GSR’s investors to dividends accrued from any capital appreciation from the cryptocurrency.

This is not the first such SAFE deal involving the tZERO tokens. Overstock.com said that as of Thursday it had inked $168 million in similar deals, with $95 million already funded. Approximately 1,000 people from 30 countries participated in the token sale, according to the company.

tZERO recently announced a joint venture with BOX Digital Markets to launch what it says is the industry’s first regulated security token exchange, and it will be funded by a portion of the STO investments, said Patrick M. Byrne, Overstock.com CEO and the executive chairman of tZERO. Read more here.

ThirtyK Staff
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