EOS Developer Block.One Attempts 10% Private Buyback of Its Stock

One is attempting a 10% buyback of its stock, offering backers a share repurchase price that will return as much as 6,567% on their initial investments.

According to Bloomberg, the buyback values the company at around $2.3 billion, up from about a $40 million valuation in the 2017 seed round.

The repurchase price being offered is $1,500 per share - up 6,567% from the original price of $22.50.

As Bloomberg notes, investors who ostensibly stand to benefit from this return include PayPal co-founder Peter Thiel, Jihan Wu of crypto mining hardware giant Bitmain and hedge fund managers Alan Howard and Louis Bacon - all of whom bought into EOS back in July 2018.

As reported today, Michael Novogratz's crypto merchant bank Galaxy Digital accepted the buyback offer and sold its shares in Block.

"A private buyback of this sort signals to me that the company believes that there are few growth opportunities in sight, or badly wants to consolidate ownership and avoid outside scrutiny."

One made a previous stock repurchase offer in which it sought to acquire 15% of its outstanding shares, priced at $1,200 each.

The company reportedly succeeded in repurchasing 13.8%, at a total cost of around $300 million.

Bloomberg cites a March 2019 email to shareholders that reportedly indicated that EOS' total assets, including cash and investments, amounted to $3 billion at the end of February.

EOS, Bloomberg notes, is a major holder of bitcoin - ostensibly holding 140,000 BTC..