Overstock and Galaxy Digital Shares Face Drawback from Crypto Bear Market

Publié le by Cryptoslate | Publié le

In accordance with increased selloffs, companies heavily vested in the nascent digital asset class are starting to face drawbacks.

The recent selloffs in cryptocurrency, sending Ethereum and Bitcoin prices below key support levels, have catalyzed falling market sentiment for both digital assets themselves and the companies backing them.

Overstock share prices declined 21 percent this week, marking total net losses of approximately $65 million in Q2 2018 thus far, according to MarketWatch.

In total, GSR will invest up to $374.55 million in tZERO in exchange for common equity in both the blockchain subsidiary and Overstock.

The purchase agreement also states that GSR will buy $30 million in tZERO security tokens from Overstock in addition to 3.1 million shares of OSTK common stock.

Following news of the investment, Overstock share prices increased nearly 21 percent in after-hours trading on Aug. 10.

Bitcoin billionaire Mike Novogratz's cryptocurrency-focused merchant bank Galaxy Digital LP started trading on Canada's TSX Venture Exchange on Aug. 1.

Galaxy Digital shares were valued at 5 Canadian dollars per share during its January 2018 private placement.

While Galaxy was awaiting approval, the bear market dragged cryptocurrency prices toward monthly lows and the company suffered a significant first-quarter loss.

According to a press release, Galaxy Digital reported unrealized losses of around $134 million across its digital asset and equity investments in Q1 2018.

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