According to a recent report, Patrick Byrne, the CEO of Overstock, a popular retail business has made it known that the company is will sell off its retail business and move fully into the blockchain space.
Overstock Raised $130 Million During the tZero Project ICO
Overstock which recently launched a blockchain based project called tZero was able to raise about $130+ million during its Token Sales. Although not much has been heard so far about the project, even though costing about $170 million in overall development costs.
A recent report has also seen Overstock’s blockchain investment arm, Medici Ventures, acquiring more blockchain based subsidiaries, with millions of dollars. According to a spokesperson from the company, this is a way for it to expand its crypto business.
Overtimes, Overstock has witnessed a serious decline in its stock price. The stock price initially witnessed a year-long high of $87 but currently, the stock is going for around $20. However, it is quite important to note that even with this tremendous decline in its stock price, Overstock is likely to still be in the green zone financially. This is because the company was able to sell about 2.8 million of its shares at over $33 last quarter, raising $94 million. The company also raised about $130 million during its tZero project initial public offering.
Overstock has Being Supportive of Cryptos
Overstock which was one of the very first major retail store to support cryptocurrencies, by accepting Bitcoin has added more crypto payment options to its platform.
This move by the company’s largest shareholder and the CEO has earned them the title of a “corporate cryptonaught”.
Judging by this, one can be almost certain that the company will eventually move towards blockchain technology. However not to the point whereby the “owners” of the company will want to sell their company and go into crypto fully.
To the surprise of many, Byrne made a recent statement claiming that they will be selling the companies retail business.
He stated that:
“Overstock is actively working to develop new technology that will help make markets more efficient, more transparent, and more liquid.”
He further added that: “it wasn’t sustainable” to be “the guy who pedals along making $10 to $20 million a year.”
According to him, tZero potentially has several “multibillion-dollar” properties within it. The move to sell off the retail business, which includes O.co and its Worldstock program, is expected to be completed by February.