The highly anticipated launch of Overstock.com Inc. (NASDAQ: OSTK) cryptocurrency tZERO is reportedly coming this week.
What Happened
Overstock CEO Patrick Byrne said the company was “ready to hit the button and
go live” on Friday with tZERO, but is waiting another few days to process user signups before going live, according
to CoinDesk.
“But by the end of the next week we will be turning the trading system live,” Byrne said, according to the Jan. 18
story.
Why It’s Important
The launch of tZERO is a key step in Overstock’s pivot from e-commerce to blockchain technology. Overstock was one of the
earliest online retailers to accept bitcoin back in 2014, and shares of the company’s stock soared more than 400 percent during the
cryptocurrency boom of 2017.
Overstock’s Medici Ventures portfolio contains at least 10 blockchain technology investments, including a tZERO
blockchain-powered investment bank.
Several Wall Street analysts have said the blockchain portfolio is now responsible for the majority of Overstock’s market
value.
In
November, Bryre told the Wall Street Journal that he was confident Overstock could divest its e-commerce business completely by
the end of February following the tZERO launch.
Overstock shares are down 76.7 percent since the beginning of 2018, severely impacted by the bursting of the
cryptocurrency bubble. The company reported a $4.28 EPS loss in 2017, and the Wall Street Journal said the Medici portfolio
generated a net loss of $39 million in the first three quarters of 2019.
What’s Next
Overstock investors will be watching for an official tZERO launch and any early indicators of how the currency is received. In
addition, traders will be looking for any subsequent rumors or announcements about a potential buyout of the Overstock
e-commerce platform.
The market wasn’t particularly enthusiastic about the tZERO launch Tuesday, with Overstock shares down 1.98 percent at the
time of publication.
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