Doctors Ventures, Overstock's blockchain investment arm, is reassigning a top executive to focus on revenue generation at its most important portfolio company, tZERO.
Steven Hopkins, chief operating officer of Medici, has planned to resign from that job to become tZERO's chief revenue officer, a regulated security token exchange, according to a Securities and Exchange filing on December 28 of Overstock.
The assignment was to follow the conclusion of an agreement in which TZERO would acquire 67% of Hopkins's encrypted startup Bitsy and his father-in-law Richard N. Beckstrand for $ 8 million and the other 33% of Doctors through a galley convertible note worth $ 4 million.
The note is due for repayment at the end of 2020, says the document, unless it is converted into equity in tZERO, which will happen automatically the next time the company will issue more than $ 2 million in stock.
The acquisition of Bitsy was scheduled to close on January 1, according to Overstock's deposit, which also said the startup had $ 5.5 million in cash.
A spokesman for Overstock did not respond to requests for further details at the time of printing.
In an interview with CoinDesk in December, the president of Hopkins and Doctors, Jonathan Johnson, said that delivering products would be a priority for the venture capital fund's portfolio companies in 2019. They also said that the launch of TZERO is scheduled for January.
Overstock founder and CEO Patrick Byrne said he intends to sell his flagship online retail business at the start of this year, leaving the company with Doctors and a lot of money.