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.
But 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.
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.