Overstock is reportedly planning to sell its retail business through an upcoming deal that will be closed over the next few months and it will place its attention on Blockchain.
The company wants to venture into blockchain technology after the selling its retail business. Its CEO Patrick Byrne told the Wall Street Journal that the company might finalize its retail business? sales deal as early as Feberuary 2019. Overstock had previously revealed that it decided to sell the business so that it can divert its attention towards blockchain technology.
? Chepicap (@Chepicap) November 23, 2018
Investors reacted positively to the announcement
Bryrne is a cryptocurrency and blockchain enthusiast which explains why he is steering the company towards that direction. He did not reveal the identity of the buyer acquiring Overstock?s retail business. However, the company?s stock experienced an uptick following the announcement.
Overstock has a particular interest in a blockchain firm called Medici. The latter houses startups and it is not directly involved with cryptocurrencies. Meanwhile, Overstock has invested roughly $175 million in Medici over the past few years. The company has been making losses since 2014. However, Bryrne is convinced that the shift towards blockchain technology could change their fortunes.
?I don?t care whether or not tZero is dropping $2 million a month. We expect we?ve acquired chilly fusion on the blockchain aspect,? stated Bryrne.
Supported startups and the way forward
Medici has so far supported various successful startups. Some of them include a Rwandese startup that manages digital property rights through Blockchain and the Voatz smartphone and blockchain based voting app. Overstock is convinced that tZero is a global leader in securities tokens which is one of the most lucrative blockchain applications.
Bryrne also noted that the masses might not understand how medici fits into Overstock?s masterplan. He also told investors in a letter that it might not be clear as to how blockchain firms are making progress in their particular fields within the tZero network. Overstock is clearly determined to pursue blockchain more in keenly at a time when more industries are adopting the technology. This means the company made the decision at an ideal time when more startups are coming up.