Block.One Buys Back Galaxy Digital Shares

A press release dated May 21, 2019 by Galaxy Digital Holdings Ltd. (TSXV: GLXY; Frankfurt: 7LX) announced an update to their material investment position. According to the statement, GLXY received $71.2 million for their ordinary shares, a 123% return on their investment from Block.One.

Block.One is private company that raised a record-breaking $4 billion during its ICO, which began offering EOS tokens to the public in June 2017. Notably, Daniel Larimer, notable for building Bitshares, a decentralized exchange, Steemit, a decentralized social media platform, and developing delegated proof-of-stake, is the current Chief Technology Officer of Block.One. EOSIO platform was released as open-source software on June 1, 2018. It was approximately one year ago that Block.one sought to acquire 15% of its outstanding shares at $1,200 each.

Galaxy Digital is a multi-service merchant bank is headquartered in New York with offices in Tokyo, Hong Kong, the Cayman Islands, and New Jersey, U.S., and they are dedicated to the digital assets and blockchain technology industry. Galaxy Digital handles trading, asset management, principal investments and advisory services. Galaxy Digital’s CEO and Founder is Michael Novogratz.

Michael Novogratz, CEO and Founder of Galaxy Digital made the following statement, “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. We continue to work closely with Block.one as a key partner across a number of our business lines, including the Galaxy EOS VC Fund, which invests in companies building on the EOS.IO protocol, and remain excited about the EOS.IO protocol.”

According to a report in Forbes, a $100,000 stake will garner $6.6 million; a staggering 6,567% return for Block.One’s earliest investors. Considering crypto winter at the end of 2018, this is might be considered quite bizarre.

With the news of such a buy back, many investors and traders are worried that the actions of Block.One may lead to less transparency. How the buy back affects the EOS token remains to be seen.

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