Overstock has been one of the leading furniture, jewelry, and decor retail business for the last two decades, but it looks like the company is now shifting its business from retail to its blockchain business. The recent announcement from Patrick Byrne, the founder of Overstock, is nothing but good news for investors as the price of the Overstock shares increased by 23% immediately after the story surfaced.
For some time, the blockchain unit of the Overstock, tZero is attracting massive investments. In August, one of the leading Hong Kong based private-equity firm GSR Capital announced to invest $270 million in tZero. The news also surged the Overstock share prices by 20% at that time.
The success of their blockchain subsidiary, which is also backed by the company’s blockchain investment unit Medici Ventures, convinced Patrick Byrne to make a shift from retail to the blockchain.
Overstock is also one of the first companies that were quick to move to internet based business model two decades ago, which also made them one of the most successful online retailers in the world. The company is again quick to adopt new technology, blockchain this time. It is now focusing more on its blockchain investment unit, Medici, in a bid to establish itself as a blockchain based startup.
Overstock also raised a substantial amount of cash after selling tZero tokens, which equals to $130 million. The GSR Capital alone purchased $30 million worth of tZero tokens. Overstock believes that the sell of their retail business will be completed by the end of February 2019.
Industry experts believe that the bold move by Overstock is a moment of relief for the crypto industry, which is facing a sharp decline after the recent drop in prices of all major cryptocurrencies. The trust in blockchain by one of the leading companies in the world that is all ready to shift their business to the blockchain can revive the investors’ confidence in the crypto and blockchain.