Overstock.com (NASDAQ:OSTK) stock was skyrocketing on Friday as the company’s cryptocurrency subsidiary tZero inked a deal with a Hong Kong-based venture capital firm.

GSR Capital, which also has offices in Beijing and Silicon Valley, is placing a major bet on tZero, which is a security token exchange, as the firm seeks to become a major player in the blockchain world. The two parties have agreed to a deal that will see the Hong Kong VC firm purchase $160 million worth of tZero security tokens, according to statements from both companies on Friday.

The tokens run on the Ethereum blockchain as ERC-20 tokens and they do not constitute company equity, thus giving GSR Capital no voting right. However, the move does entitle the firm’s investors to dividends accrued from any capital appreciation from the cryptocurrency.

The deal will see 10% of the tZero adjusted gross revenue to be distributed to any token holders on a quarterly basis. These dividends will come from tZero’s regulated trading platform, which has announced plans to list its initial coin offering (ICO) tokens and other blockchain-based securities.

“Years ago we saw the world-shaking potential of blockchain, and since then we have been methodical in building tZERO into a company that will bring great efficiency and transparency to capital markets domestically and abroad,” Overstock CEO and tZero Executive Chairman Patrick Byrne said.

“I truly believe what we are doing is historic and, while there is still much to be done, our success in this STO [security token offering] has given us the resources we need to see it through.”

OSTK stock was up more than 12.5% on Friday following the news, but shares dipped a slight 0.5% after hours.