In a scenario where major cryptocurrencies see visible drop-off, Overstock founder, Patrick Byrne bets on the blockchain. However, it is surprising to still look blockchain and crypto with potential where wall street analyst, Tom Lee even broke down his prediction from $25000 to $15000. In fact, overstock itself is in red, losing $163 million within the first three quarters of 2018.
Following Blockchain Bet, Overstock’ surges 26%
The announcement comes into the picture with wall street’s latest release which states “Patrick Byrne is optimistic and confident about the potential of blockchain”. Despite the market sever crash, he has a big picture of selling his retail branch to solely work on blockchain in the coming year. In fact, he is expecting to get the deal closed by Feb next year. Consequently, the plan of selling an e-commerce branch of his firm knocked in his mind since 2017
Since the announcement rolled out, shares of Overstock surges by 26% – however, the stock was down 66 percent in this year.
Notably, the bet on blockchain comes in view of the loss company suffered since 2017 – more than $22 million in 2017 and $39 million in 2018, despite the investment of more than $175 million into Medici Ventures, Overstock’s subsidiary. Not just that, his new trading system, named tZero is also not well performing which he noted as;
“I don’t care whether tZero is losing $2 million a month, “We think we’ve got cold fusion on the blockchain side.”
Founded in the year 1999, Overstock is the brainchild of Patrick Byrne. He has been an adamant believer of blockchain and has been named its venture as the prominent leaders to accept Bitcoin in 2014. Confidently, he encourages bitcoin and its underlying technology across the online retail.
What’s your view on Overstock looking at possible opportunities in Blockchain? Is it a strategy to surge the value of their own stocks? Let’s discuss
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com