News

Overstock Will Shift Its Core Business To Cryptocurrency

Overstock, the home apparel and furniture seller, will turn its ship towards cryptocurrencies. Patrick Byrne, its CEO, and founder announced that they will be getting rid of their retail business shortly. This with the intention of directing all their resources to its crypto arm Medici Ventures, and their signature cryptocurrency startup tZero.

Overstock Investing In Cryptocurrency

One of the most traditional brands of USA is saying goodbye to its retail business and turning to new challenges. Overstock is adopting a new business model, where they will abandon their trademark retail home goods platform and will turn into a venture capital investment firm.
Overstock Will Shift Its Core Business To CryptocurrencyBut the most surprising thing is the focus of their attention: cryptocurrencies. The founder and CEO of the company, Patrick Byrne announced earlier this week that they will be selling the retail division to invest in more cryptocurrency startups. Patrick is a known blockchain and cryptocurrency believer. He thinks that the new economy will be based on cryptocurrencies in the future.
Also, the retail platform was not going through a good time. Numbers were in red for the retailer that was piling up losses. In the last year, their revenue was down by $1.745 billion. That was terrible for them, and they are hoping to turn green the next year. However, Patrick chose a difficult moment to announce this due to the bear market. Bitcoin prices have lost more than 70% since January.

Cryptocurrency Platform tZero

However, there is a reason why Patrick trusts so much in cryptocurrencies as a business model. Overstock has already a cryptocurrency business division called Medici Ventures. Medici Ventures has already invested in several crypto startups all around the world. Voatz, the startup that is pioneering blockchain voting in West Virginia is in their portfolio.
Overstock Will Shift Its Core Business To Cryptocurrency
But the real ace up their sleeve is tZero. tZero is their attempt to make a different and regulated exchange for tokens. Started almost two years ago, when the ICO craze was in full force, it seemed a good investment for the brand. Patrick is really happy with the possibilities of this business. But not everything is pretty here. tZero has been losing money constantly since its foundation. But that thing does not worry Patrick. He declared that:

“I don’t care whether tZero is losing $2 million a month. We think we’ve got cold fusion on the blockchain side.”

This new direction has been received positively. The Overstock stock price went up by more than 20% just with this announcement. It remains to be seen if this new focus on cryptocurrency will pay them well in the end.

Related posts
cryptocurrencyDOGEdogecoinDOGEUSDElon MuskNews

Be Careful! Elon Musk Warns As Dogecoin Soars On SNL Eve

In the warm-up to a special Saturday Night Live Edition featuring the self-acclaimed billionaire dogefather, Elon Musk, Dogecoin (DOGE) has recorded tremendous speculative success and is currently sprinting past the $0.6 mark in a bid to cross the $1 epic…
cryptocurrencyNewsRippleSECXRP NewsXRPUSDXRPUSDT

A Look At What’s In Store For XRP If Ripple Eventually Goes Public After SEC Case

Fired up by the soaring success of Coinbase, Ripple Labs Inc, the establishment behind the fifth most valuable cryptocurrency – XRP, has disclosed plans to issue an Initial Public Offering after it is done with its court case. The embattled altcoin…
BanksBinancebnbusdcryptocurrencyCryptocurrency NewsNews

Banks Refusing To Work With Crypto Will Pay A Hefty Price: Binance CEO CZ

The CEO of Binance has been very vocal about his stances on the cryptocurrency market. Yesterday, the CEO revealed he may have underestimated cryptocurrencies like DOGE, ETH, BTC, and BNB. He even emphasized DOGE’s impressive performance, despite holding zero Dogecoin….