Overstock Faces Investor Hurdles Ahead of Blockchain Stock Sale

Overstock is lending a hand to broker-dealers as it inches closer to its blockchain-powered stock issuance.

AccessTimeIconDec 6, 2016 at 2:00 p.m. UTC
Updated Sep 11, 2021 at 12:44 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Overstock is lending a hand to broker-dealers as it inches closer to its blockchain-powered stock issuance.

The e-tail giant said yesterday that it is working with stakeholders to boost education of how investors can successfully subscribe to the blockchain stock sale. The company first announced its intention to pursue a sale through this method earlier this year.

According to Overstock, prospective buyers of those shares – which would be tied to digitized assets listed on a distributed ledger – have run into headwinds. More specifically, there have reportedly been instances in which broker-dealers simply aren’t sure how to go through the process.

Overstock CEO Patrick Byrne said of the effort:

"We're engineering an entirely new approach to finance, and as such, a steep learning curve among broker-dealers is not surprising. We’re working with all the involved players and are confident that with just a little patience, individuals on both ends of this transaction can navigate it successfully."

Overstock is expected to issue as many as 2 million shares, and could raise as much as $30m from the effort. The e-tailer launched its crypto-backed exchange, dubbed tø, in August 2015.

Image via Shutterstock

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.