Overstock, the America-based internet retailer recently planned to sell the whole lot of its retail business which is decades old in the upcoming few months. This plan comes in with a motive to use the proceedings as a massive bet on the blockchain.
This sale plan was awaited for quite a long time now and the company plans to wrap it up by the month of February. Patrick Byrne, the CEO, and founder of Overstock, refrained to point out any name for the potential buyers. Byrne is a dedicated believer of the technology responsible for serving as the underpin that dominates bitcoin and similar cryptocurrencies.
On Friday, the shares for Overstock surged to a whopping 26 percent of the original. However, the early surge for company’s shares went downhill by a massive 66 percent. Overstock came into being under the guidance of Byrne in the year 1999. It started by selling goods such as jewelry and furniture over the internet. Currently, the company is betting on the future for the brand with multiple start-ups over blockchain. This move is to be carried out via its subsidiary firm called the Medici Ventures.
This company, based in the Salt-Lake City, has invested about $175 Million till date on Medici. It has been pitching in money since the inception of the subsidiary company in the year 2014. As of now, the company has lost about $39 Million during the initial 3 quarters of this year along with $22 Million lost in the previous year. Overstock itself comes from a place of substantial loss which boils down to $163 Million during the initial 3 quarters of 2018.
tZero, a widely-popular startup by Overstock, which is a well-known trading system, hasn’t actually launched commercially. This startup is also currently burning money. To this, Byrne commented that it doesn’t matter to the company whether tZero has been losing money. Overstock is positive that the company is soon to initiate a cold fusion with blockchain to bring in better business prospects in the future.
Medici is comprised of the start-ups that expand way beyond the normal scope of cryptocurrencies. One of such companies is Voatz that runs a block-chain based business for voting via the use of smartphone app. Another start-up which is a part of Medici has been working over the digital rights of the properties based on Rwanda. Overstock share prices surged to a whopping 400 percent starting July towards the ending months of 2018.