Search ForexCrunch
  • The company of  Michael Novogratz disposed of its stake in EOS developer company.
  • EOS reaction is muted so far as the coin stays in the range.

Galaxy Digital, founded by a prominent cryptocurrency supporter Michael Novogratz, sold its stake in Block.One for $71.2 million. According to the announcement made by Galaxy Digital, this move should improve the portfolio of the company and keep it well diversified.

“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,” the CEO of Galaxy Digital Michael Novogratz commented.

The two companies created a joint venture in January 2018 and launched EOSIO Ecosystem Fund worth of  $325 million. However, Galaxy Digital is not the only big name in the list of Block .one’s investors. PayPal co-founder Peter Thiel and Bitmain co-founder Jihan Wu also financed the company in 2018.

Meanwhile, according to Bloomberg, Block.one has launched a buyback program of 10% of its shares. Currently, the company values itself at $2.3 billion, which is about 66% increase from the valuations of 2017 made during the seed round.

EOS showed little reaction to the news moving within a tight range limited by $6.00 on the downside and $6.7 on the upside. The 5th largest coin has gained 1.6% in recent 24 hours and stayed mostly unchanged since the beginning of Wednesday. At the time of writing, EOS/USD is changing hands at $6.3.

EOS/USD, 4-hour chart