Galaxy Digital, a hedge-fund bank founded by former hedge fund manager Michael Novograch, received $ 71.2 million after selling its shares in Block, the maker of the EOS blog.
Galaxy Digital announced in a statement on May 21 that it closed the deal on Monday after a tender offer on its Block.one position was made on April 18. The company claims that it has returned 123 percent of the long-term return on investment and following the deal, its remaining shares in Block.one “will no longer maintain a material investment situation.”
“The acceptance of Block.one’s exclusive offer reflected a decision to rebalance the portfolio and maintain an adequate level of diversification after the position increased due to its significant performance relative to the rest of the portfolio,” Novogratz said in a statement.
Galaxy Digital added that it is still a partner with Block.one on other businesses, such as the Galaxy EOS VC Foundation, which mainly backs start-ups that develop applications on the EOS blockchain network. Galaxy Digital and Block.one entered into a joint venture in January 2018 to launch the EOSIO ecosystem with $ 325 million.
In July last year, Block.one received an investment from a large number where investors like PayPal founder Peter Thiel and Bitmain founder Jihan Wu.
The departure of Galaxy Digital comes as part of Block.one’s acquisition plan of 10% of the company’s shares.
According to a report by Bloomberg on Wednesday, Block.one’s acquisition bid estimates itself at around $ 2.3 billion, an increase of almost 66 times what it estimated in 2007. The purchase price for the acquisition is about $ 1,500 per share. It was offered at $ 22.5 per share during the 2017 round.
The report added that Block.one had about $ 3 billion in assets including cash and investments at the end of February, based on the March 19 email block.one was sent to shareholders and looked for by news outlet. Block.one also holds as many as 140,000 bitcoin, the report further said.