E-commerce retailer Overstock revealed its latest quarterly results to show a spend of $3.2 million on Medici, its blockchain-related subsidiary in a quarter that showed
Online retail firm Overstock revealed its latest quarterly earnings in a letter to shareholders and had CEO Patrick Byrne talking up the company’s blockchain-related investments in the letter.
Overstock also revealed it is expected to spend around $8 million in direct costs towards Medici, its subsidiary functioning as a blockchain stock exchange. One of its recent efforts include blockchain trading platform tØ which recently helped a hedge fund borrow $10 million in shares through its blockchain-based platform.
Byrne added that additional expenses such as shared overhead and load factor will push the real cost beyond $8 million this year.
He referenced Jamie Dimon, JP Morgan CEO who previously warned in his own letter to the bank’s shareholders that “Silicon Valley start-ups are coming to eat Wall Street’s lunch.” Bryne made light of the claim and wrote:
While I concur with Mr. Dimon about the disruptive potential of blockchain technology for Fintech, and while we have a pole position in that race, our intent is to share our lunch with Wall Street, not eat theirs.
Byrne also added that Medici is unlikely to be integrated with Overstock’s core online retailing business which has the firm actively looking into alternative ventures.
For obvious reasons I do not believe that this enterprise can be co-managed with our online retailing business, and in that regard am aggressively exploring alternatives with an eye to maximizing shareholder value.
Despite the net loss, he talked up the potential of blockchain related investments by pointing to key patents on “fundamental processes for crypto-capital formation,” filed by the company. According to Byrne, the filing comes after a “mashing together” of crypto-technologists with Overstock’s developers, IP lawyers and those within Wall Street.
Images from Shutterstock and Overstock’s Twitter.
Last modified: July 2, 2020 8:21 PM UTC