If You Had Invested $100,000 in This Startup Three Years Ago, You Would Be Getting $6.6 Million Now

If You Had Invested $100,000 in This Startup Three Years Ago, You Would Be Getting $6.6 Million Now

 
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Block.one startup provided its early investors with a stunning return-on-investment (ROI) of 6,567% in less than three years, Bloomberg reports. Investors such as Peter Thiel, Alan Howard, James Sowers, Mike Novogratz, Christian Angermayer and Louis Bacon are known to be among investors and entrepreneurs who invested in Block.one.

“Block.one is one of the most promising and best positioned companies in the blockchain industry, and its success story is just beginning,” commented fintech investor Angermayer and added he doesn’t intend on selling any shares.

The startup, which works to develop an open source software specialized in high-performance blockchain technologies, completed the biggest IPO to date when it raised $4 billion in March 2018. Block.one is estimated to be worth around $2.3 billion now.

“Block.one is very much the odd one out in the crypto market,” said Tom Shaughnessy, the co-founder of Delphi Digital.

A stunning ROI ratio delivered by Block.one has stunned many, not only in the crypto industry, but in the traditional markets as well. If one had invested $100,000 in Block.one earlier, a paycheck of $6.6 million would have had their name written on it today. Mike Novogratz, previously a partner at Goldman Sachs and owner of the merchant bank Galaxy Digital today, reported a 123% ROI earlier when he sold his Block.one stake for $71.2 million.

Bloomberg, citing an email sent from the management to its shareholders, notes that the company reported assets of around $3 billion at the end of February, out of which the biggest part ($2.2 billion) is invested in liquid fiat assets. Accordingly, the US government bonds are the preferred investing option in this regard.

“They designed a very clever mechanism to hoover up as much capital as possible. Bitcoin was started on a shoestring and Ethereum raised just a few million dollars, which goes to show you don’t need anything like the money Block.one raised to launch and scale a successful network. It should be beholden on them to explain why they needed that much and what they are doing with it,” said Richard Burton, the founder of Balance.io.

Block.one also reported that its cryptocurrency portfolio is worth around $500 million, halved in size after the cryptocurrency market crash in the late 2018. However, those losses were thought to be recovered as bitcoin rallied above $8,000 in May. It is believed that the firm owns approximately 140,000 bitcoins.

The company is working on a social media product, which is scheduled to go public next month.