When you visit Overstock.com, you will still be greeted by discounted Martha Stewart carpet advertising and a coupon for an additional 10% discount on pre-made bedroom furniture. However, it can no longer be denied that the company is not primarily an e-retailer – it is a cryptocurrency company now.
Cryptocurrency Startup tZero Now Worth More than Overstock
The company, as reported by CCN, was one of the first traditional companies to embrace cryptocurrency – not just blockchain technology in general – and in addition to accepting payments bitcoin, the company has an arm of fortune dedicated exclusively to blockchain industrial investments.
Now, one of these branches – tZero – is worth more than the entire Overstock company, after the Chinese private equity company GSR Capital has invested $ 270 million to buy a 15% stake in the exchange operator security token with a valuation of $ 1.5 billion.
According to the full board, GSR will also purchase 30 million tZero security tokens for $ 30 million, plus 3.1 million Overstock common stock for just under $ 105 million.
Previously, GSR purchased $ 160 million tZero tokens in June during the initial start-up money supply (ICO), bringing the total investment of the Hong Kong company into the Overstock network to over $ 560 million.
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Source: Yahoo Finance
Overstock shares rose 15% on Friday morning after Thursday's announcement, with an intraday peak of $ 48.00 at the time of writing.
Overstock – whose shares were traded below $ 20 a year ago and have largely followed the cryptocurrency market trajectory since then – now has a market capitalization of about $ 1.34 billion, $ 160 millions less than tZero, of which the subsidiary Overstock Medici Ventures in an 80 percent owner.
It is not a mistake that Overstock, which originally left its mark by liquidating the goods from failed dotcom startups, has become a proxy stock for the large cryptocurrency market.
According to CNN, DA Davidson analyst Tom Forte said that Overstock's blockchain investments now account for about 60 percent of the company's total value and believes that OSTK's actions will rise to $ 112, an increase of almost 150 percent from the current level.
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