OSTK to HODL: Overstock to Keep 50% of All Bitcoin Payments as Investments

Online retailer Overstock.com is shifting an earlier strategy by keeping half of the bitcoin it takes in as payment, the company's CEO has said.

AccessTimeIconAug 7, 2017 at 7:30 p.m. UTC
Updated Dec 12, 2022 at 1:52 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Online retailer Overstock.com is shifting its cryptocurrency investment strategy keeping half of the bitcoin it takes in as payment, the company's CEO has said.

Overstock reported its second-quarter earnings last week, revealing that its Medici blockchain business lost $3.3 million before taxes during that period. At the time, the company explained the loss as necessary as it continues to ramp up development around it t0 crypto-securities trading platform.

In an accompanying earnings callhttps://finance.yahoo.com/news/edited-transcript-ostk-earnings-conference-155549361.html, CEO Patrick Byrne was asked about the recent price increases in bitcoin markets and whether Overstock – which has traditionally kept 10 percent of its bitcoin earnings and converted the rest to dollars – had "changed its strategy" in light of the developments.

According to Byrne, Overstock's board of directors approved a plan to keep 50 percent instead. Notably, he indicated that the firm may move to hold other "crypto-securities", but did not elaborate further on what that might constitute.

He said on the earnings call:

"I mean we can keep it either in Bitcoin or in some assortment of cryptosecurities. So you'll see a portfolio emerge there. We've had there -- had some good luck with some of our -- we've been storing some coins from counterparties for a couple of years and they've turned out -- they've grown up nicely. Anyway, we have some nice gains in the coin department."

In response to the question, Byrne said that the company did at one point see a bump-up in overall bitcoin spending.

"We have seen a material change, in part because of everything in the news it spiked and then it settled back down to about $50,000 per week," Byrne explained.

Image via Shuttesrtock

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 offers all employees above a certain salary threshold, including journalists, stock 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.