Online retailer Overstock.com has reported that its blockchain subsidiary, Medici Ventures, lost $3.3 million before taxes during the second quarter of 2017.
In a short note accompanying a U.S. Securities and Exchange Commission filing on Friday, Overstock sought to downplay the figures, framing the news as expected given that it is expanding the scope and functionality of its recently launched blockchain-based securities market, tØ.
Overstock told shareholders that, while it is seeking opportunities to grow the business, it anticipates Medici will continue to lose money in the short term.
Last quarter, the firm recorded an $8 million pre-tax loss, which included a $4.5 million impairment charge related to its investment in blockchain startup PeerNova. Losses reached $11.8 million for the entirety of 2016, according to earlier disclosures.
Overstock moved to say that additional impairment losses may also incur.
As reported previously, Medici has expanded its investment portfolio in the remittance use case to include companies such as Peernova, Bitt, SettleMint, Factom and IdentityMind. In April, the firm announced that it had invested $400,000 in Ripio's Series-A funding round.
Overstock image via CoinDesk Archives