Overstock CEO sells $20 million worth of stock, reports suggest
The CEO of Overstock.com, Patrick Byrne has dumped 10 percent of his shares in an attempt to meet his obligations, CNBC reported on September 11. According to a form 4 SEC filing, Patrick Byrne sold Byrne sold more roughly $15.8 million worth of stock based on last week’s prices on Thursday and Friday, and $4.9 million worth on Monday.
Given the relationship between Overstock and the ever-plumetting price of cryptocurrencies, there were speculations over whether this step was a reaction to the ongoing bearish cycle that has characterized most of 2018.
Rejecting these speculations, Byrne wrote an open letter to investors, which he signed “your humble servant.” He mentioned several reasons for shareholders not to be concerned about his decision, saying “don’t worry, I’m still in the game, and we’re going to bring this House to its knees.” Byrne also noted that he is going to reinvest most of sold shares “next to you [investors]:”
“Within a matter of days, 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).”
The Salt Lake City-based online retailer better known for selling furniture and home décor products made its foray into the world of blockchain by launching Medici Ventures in 2014 to use the company’s money to invest in blockchain projects.
‘Sold off stock to meet obligations’
Byrne stressed that he sold off stock in order to meet tax obligations, saying that he needed to “pay Uncle Sam his cut,” stressing “remember, I didn’t build this. Washington built this.”
“I needed to sell stock during this quarter to meet such other obligations. I am disappointed that I when the deadline arrived for my sales this quarter, the stock had dropped (I sadly note that over the last 180 days the correlation between OSTK’s and Bitcoin’s daily movements has been 85.5%, and again warn people: we don’t have significant holdings of Bitcoin),” he added.
The company was founded by Patrick M. Byrne in 1997 and he launched the company in May 1999. Overstock.com initially sold exclusively surplus and returned merchandise on an online e-commerce marketplace, liquidating the inventories of at least 18 failed dot-com companies.
On January 9, 2014, Overstock.com became the first major retailer to start accepting bitcoin as payments for its goods
As an early advocate for Bitcoin and blockchain technology, Byrne is regarded by many as a pioneer in the crypto space.
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