Overstock CEO Sells 10% of His Stock to Invest in Blockchain Projects
According to a report by CNBC, Patrick Byrne issued a letter to shareholders this week to explain the sales, which occurred between Thursday and Monday. The stock sales came after Bryne first disclosed his plans in a March SEC filing.
In the letter to shareholders, Bryne reveals that he will be re-investing a majority of the proceeds alongside Overstock and the firm’s blockchain venture capital firm, Medici Ventures.
I will reinvest most of this money into two co-investments with Overstock and Medici Ventures (thus I am eating a double dose of my own cooking, as months ago I promised you I would).
Bryne, who founded the company 18 years ago, noted that he has only ever sold a tiny sliver of his stock before and even refused to take a salary for a majority of the years.
While it is unclear which exact projects Bryne plans to invest in, Overstock has made notable investments in the past, including the creation of its subsidiary tZero, a blockchain platform for capital markets, which currently boasts a $1.5 billion valuation.
Bryne also noted, despite the company’s stock being correlated with the price action of Bitcoin, Overstock doesn’t have “significant holdings of Bitcoin.” However, he has previously stated that he plans to reorganize or sell the e-commerce business to focus on building in the blockchain space.
The Overstock share price dropped 12% during the same time Byrne was sold his holdings and is now down more than 61% year to date.
More: Overstock CEO sells $20 million worth of stock but warns investors in letter ‘not to be alarmed’
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.