Overstock, a major U.S. e-commerce service, fully enters the cryptocurrency and blockchain business!
Overstock, a major US e-commerce site, plans to sell its core retail business in the near future and shift focus to virtual currency and blockchain technology, it has becomeclearthat this is the direction.
The report was on the 23rd,The Wall Street Journalreported.
What will happen to Overstock as it focuses on cryptocurrency and blockchain while retail remains?
The following three points will be explained.
- Why focus on cryptocurrency and blockchain?
- What will happen to the revenue-centered retail business?
- How will Overstock's stock move?
Why focus on cryptocurrency and blockchain?
One of the blockchain companies Overstock has invested in isblockchaincompany “tZero.”
In August 2015, Overstock CEO Patrick Byrne rented Times Square Studio for a lavish unveiling party for the latest project, and as part of the blockchain project, he launched “tZero.”
In other words, Overstock has been paying attention to virtual currencies and blockchain since before 2015.
Approximately three years since the launch of tZero, the company has not commercialized it and is incurring losses of several millions of dollars per month.
With this in mind, Overstock CEO Patrick Byrne explained why they would focus on cryptocurrency and blockchain even if it means selling the retail business as follows.
Whether tZero is losing $2 million a month is not the issue.
We are betting on the future of cryptocurrency and blockchain.
In the future, resources will be focused on Medici Centures, which will invest in startups related to blockchain.
Reference:The Wall Street Journal
What will happen to the retail business, which is the revenue center?
As a major US e-commerce site, Overstock obviously derives the majority of its revenue from retail.
The report clarified that the company will focus on cryptocurrency and blockchain, but what will happen to the retail business?
Important points for understanding are the following three.
- The retail business will be sold
- The buyer is not revealed
- The sale was being considered even before 2017
Overstock has announced that it will sell its traditional retail business, which has been the center of revenue, to enter the cryptocurrency and blockchain business more seriously.
The name of the buyer has not been disclosed, but it has been stated that the sale of the retail business was being considered even before 2017, and at least by February 2019, the sale is planned to be completed.
How will Overstock's stock price move?
Overstock's stock price is.......More details here below
