Online retailer Overstock aims to replace its established business with a blockchain-based firm, predicting growing growth over the next few years.
It’s possible, according to the Wall Street Journal, that Patrick Byrne, the company’s founder and CEO, will sell Overstock by February 2019. With regards to bitcoin and other cryptocurrencies, Bryne has a deep interest in the technology that underpins them. However, he has yet to reveal the new owners of the current business.
After the sale of the business was confirmed on Friday, shares of Overstock fell by 26%, while the shares have risen by 66% in the year.
In 1999, Bryne launched its Overstock e-commerce business to sell items such as jewellery and furniture. In the past, he was a pioneer in the field because of his work with various blockchain start-ups.
In the first three quarters of the year, the corporation had a net loss of $163 million. Medici Ventures, the company’s blockchain-based subsidiary, has also received a $175 million investment from Medici. Since Overstock acquired the company, it has been wasting money, according to the company’s public records. It has lost $39 million in the first three quarters of the year, compared to a loss of $22 million last year.
When it comes to their own popular start-ups, tZero is one of the losses for the corporation.
Bitcoin, the share index for cryptocurrencies, and Overstock have all followed the same pattern, according to Byrne’s message to shareholders. Since July, Overstock’s stock has fallen by more than a quarter of its worth.
Overstock’s share price was $80 in January, but as of Friday’s market report, the share price has fallen to just $21.