Aug 11, 2018

Overstock leaning into blockchain and cryptocurrencies

A bitcoin coin.

Photo: Ina Fassbender/picture alliance via Getty Images

Online retailer Overstock.com is "going all in on blockchain and cryptocurrencies," CNN reports.

The details: The goal is to jump-start growth by "investing heavily in blockchain technology," per CNN. Overstock.com CEO Patrick Byrne said in a letter to shareholders that the company thinks "shareholders are better served now by a cash-conservative strategy," and can "focus on developing more non-traditional means of growth and profitability."

A private equity firm in Hong Kong, GSR Capital, announced an investment in Overstock.com of almost $375 million on Friday; $270 million of that will be for tZero, an initial coin offering (ICO) the company plans to launch.

  • The Securities and Exchange Commission is investigating the ICO, which Overstock.com says it is cooperating with.
  • GSR also intends to purchase "$30 million in tZero security tokens, a form of crypto investments."
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