Pharos Layer1 blockchain secures $247.3 million investment from GCL New Energy at a $9.5 billion valuation. The deal involves a binding agreement with strict conditions set by GCL, tied to Pharos token’s performance for unlocking funds. GCL’s stock price rose before the announcement, suggesting potential insider trading. Valuation is based on locked assets, but data is questionable as Pharos mainnet is not yet live.
The transaction may be speculative, benefiting both parties while passing risks to the market. Pharos, which claims to be a high-performance parallel Layer 1 public chain, announced a new round of capital cooperation upgrade with GCL New Energy, a Hong Kong Stock Exchange listed company. GCL New Energy completed its investment subscription in Pharos with a valuation of $950 million, amounting to $24.73 million. GCL New Energy is a well-known private photovoltaic power generation company in China, mainly engaged in the development, construction, operation and management of solar power plants.
This aligns very well with Pharos’s RWA’s key development direction, and it appears to be a transaction with positive strategic significance for both parties. However, this deal has also raised many questions in the market. Many details hidden within the complex announcements reveal that this is not a conventional direct financing transaction, but rather a bundled deal involving mutual investment, phased delivery, and a market capitalization-based bet. Furthermore, all core delivery conditions are firmly in the hands of GCL New Energy.
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