(BlockBar) Block.one is in the middle to buy back another equity in order to bring on more strategic investors. To be noted, the company that built the EOS blockchain. The company has previously conducted equity buybacks to resell those shares to new investors that it sees as helpful to its business. Although there are no details about who would be joining Block.one’s list of backers as yet, it’s still helpful to revisit a previous instance of Block.one repurchasing equity from prior investors in order to bring on new ones.
According to a recent report from Bloomberg, which cited a March 19 email to the startup’s shareholders, some investors had received a 6,567 percent return on their Block.one holdings. According to Brendan Blumer, Block.one’s CEO “The buyback was designed for seed investors, who had been in for a long time, and it made room for potential future strategic shareholders in a way that didn’t unnecessarily inflate our balance sheet.” Blumber is one of the largest shareholders in the company.
The Bloomberg report emphasizes the involvement of the co-founder of PayPal, Peter Thiel. Alan Howard and Louis Bacon are also amongst the noted investors. Although Thiel, Bacon and Howard saw a 30 percent gain on their investments which is a healthy return but it is nowhere near the 6,567 percent trumpeted in Bloomberg’s headline. This is worth considering that Thiel, Bacon and Howard are strategic investors who came on in July 2018which much later than the seed investors.
Block.one declined to share the investor email that Bloomberg reviewed. It has also declined to give a timeline for its seed investments. But reportedly company’s balance sheet is stronger than ever. According to Bloomberg’s report the company had $2.2 billion, mostly in U.S. government bonds. The investor letter said it also held 140,000 BTC. It would be worth over $1 billion at face value, if Block.one holds that much. Reportedly, the company has also announced a new social media platform called Voice. The company plans to use its reserves to market the service aggressively to the public.
Mayan MV is a passionate writer and cryptocurrency enthusiast. He currently serves as marketing strategist and contributor at BlockBar, based in Singapore. Mayan has started his career in blockchain technology about five years ago, and he has also written over a hundred articles that span across various fields.
