Block.one, the startup behind the EOS blockchain ecosystem, has reportedly closed a new investment round for an undisclosed amount led by billionaire investor Peter Thiel and ASIC mining chip maker Bitmain.
— EOS (@EOS_io) July 16, 2018
Thiel is no stranger to crypto, and he has shared publicly in the past that he has a significant investment in Bitcoin. His fund has publicly made investments in liquidity provider Tagomi, in addition to Polychain Capital and Metastable Capital, both hedge funds focused on digital assets.
Bitmain designs application-specific integrated circuit (ASIC) chips and manufacturers cryptocurrency miners, and recently closed its own Series B financing round that raised somewhere between $300 million and $400 million, valuing the company at $12 billion.
In a statement accompanying the announcement, Bitmain founder Jihan Wu explained the reasoning behind the company’s investment in the largely speculative blockchain startup.
The EOSIO protocol is a great example of blockchain innovation. Its performance and scalability can meet the needs of demanding consumer applications and will pave the way for mainstream blockchain adoption.
The news comes just months after Block.one raised $4 billion via its EOS token sale, which was enough to eclipse this year’s largest IPO and more than double the next largest ICO.
EOS has been under fire recently, as it struggled with the deployment of its mainnet and has faced growing criticism for its experimental form of governance. While it is unclear at this time why exactly Block.one needs more capital, beyond perhaps setting up an internal VC arm, the company will likely face even harsher criticism for what appears to be runaway fundraising.
Photo: Heisenberg Media / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.