Overstock Secures New Partnership For Blockchain Stock Sale

E-commerce giant Overstock’s blockchain stock offering is set to begin later this month.

AccessTimeIconNov 4, 2016 at 12:56 p.m. UTC
Updated Sep 11, 2021 at 12:35 p.m. UTC

E-commerce giant Overstock’s blockchain stock sale is set to begin later this month.

Overstock announced today that Connecticut-based investment bank Source Capital Group, Inc. will serve as dealer-manager for its planned blockchain-based stock offering.

In March, the e-commerce giant said that it would issue its own stock via blockchain, utilizing its tØ blockchain platform to facilitate trades. During an event last month, Overstock CEO Patrick Byrne said that trading of the stock could begin as early as mid-December.

Now, the company has divulged new details. According to Overstock, the e-commerce company is planning to offer as many as 1 million shares. Each of those shares, the company said, will have preferential rights to a 1 percent cumulative annual cash dividend. The subscription period for the share offering is set to begin on 15th November.

Overstock further explained:

“Overstock intends to offer up to 1 million shares of its preferred stock, and will give shareholders the opportunity to subscribe for shares of its Blockchain Voting Series A Preferred. Stockholders will also have an opportunity to subscribe for an alternative series of its preferred stock which will be economically identical to the Blockchain Voting Series A Preferred but will trade in the over-the-counter market.”

In statements, Byrne praised the team at Source Capital Group.

“The immediacy with which Source grasped the value of what we’re doing, from not only a business but from a historical point of view, made it clear that we’d found the right partner to take us through this offering,” he said.

Image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Genesis Confirms 3AC Exposure, DCG Assistance

The crypto market-making and trading giant had been rumored to have suffered hundreds of millions in losses, in part thanks to dealings with hedge fund Three Arrows Capital.

CoinDesk - Unknown
2
CoinDesk - Unknown
Ethereum's Sepolia Testnet Successfully Switches to Proof-of-Stake

The Sepolia proof-of-work chain merged with its proof-of-stake chain on Wednesday, taking Ethereum one step closer to its own Merge moment.

CoinDesk - Unknown
3
CoinDesk - Unknown
Nic Carter vs. The Bitcoin Maximalists

If maximalism has become nothing but a refusal to think through bitcoin’s actual usefulness, it has become an intellectual dead end. No surprise, then, that the intellectuals are jumping ship.

CoinDesk - Unknown
4
CoinDesk - Unknown
New York Regulators Have Planted a Seed for Stablecoin Transparency

New guidance from the New York Department of Financial Services should shake up how stablecoin issuers do attestation and other reporting, says our columnist.

CoinDesk - Unknown