The original developer of the EOSIO blockchain platform and EOS coin, Block.one, has acquired some stake in Silvergate which purchased Meta’s Diem stablecoin project. CEO of Block.one, Brendan Blumer, confirmed the acquisition of a stake in the holding firm for Silvergate Bank, Silvergate Capital, a crypto-fiat gateway network perfectly designed for financial institutions, according to a SEC filing.
That document, dated November 23, listed November 16 as the date of that transaction. The purchase of almost 3 million shares represents some 9.27% of Silvergate stock. Blumer acquired 571,351 shares, and Block.one bought 2,363,186. According to reports by CNN, that deal will make them Silvergate’s biggest shareholder.
— yeezus (@yeezuscapital) November 23, 2022
Block.one managed to raise a record-breaking $4 billion in its initial coin offering (ICO) for EOS in 2017-2018. Later on, the United States Securities and Exchange Commission (SEC) charged Block.one with not registering its ICO. Block.one settled with the SEC for $24 million.
Notably, Block.one was also the object of class action suits by EOS investors over money-raising issues, and later, the coin’s market performance. The EOS Network Foundation announced its plans to sue Block.one for $4.1 billion in February this year. The network became entirely decentralized in September.
Block.one also launched the Bullish crypto exchange.
Silvergate recorded mixed Q3 results in 2022, with crypto-to-fiat transfers dropping by $50 billion year-on-year, although the profits surged by 84% to reach $43.33 billion in the same quarter. The bank had partnered with Facebook (Meta) to issue the Diem stablecoin.
Later, the project was sold to Silvergate, which said it would incorporate it with its Silvergate Exchange Network. Silvergate wanted to issue a stablecoin in 2022 but stated that there would be a delay in the launch in October, allegedly because of distribution issues.
Meta employees and others who had worked in Diem went ahead to develop the Aptos network. Silvergate has also partnered with Crypto.com.