Blockchain To Not Become Main Business Direction Of Overstock
Overstock, the world-famous retailer that developed a trading platform for the tZero security tokens, postponed the development plans exclusively in the direction of blockchain and will not sell its e-commerce business yet, CoinDesk reports.
Initially, the company intended to sell the traditional business at the end of February 2019, but on Monday, March 18, when discussing the financial results of Q4 2018 during a conference call, Patrick Byrne, the Overstock CEO, told shareholders that he wouldn’t specify the exact dates of the sale.
The head of the company compared the current situation with cooking a soufflé, which, according to him, is considered ready only when it looks as such and not before.
It should be noted that the loss of tZero and Overstock without tax deductions was $12.4 million and $27.7 million, respectively, according to the results of the fourth quarter.
Earlier, Overstock has prepared an annual financial report for the US Securities and Exchange Commission (SEC). It states that the sale of the retail business will reduce the company's income.
The traditional business direction is pretty predictable, and the company has achieved significant success in it. The same cannot be said about its Medici Ventures division, which has been working for a short time with significant expenses and does not bring much profit yet. There is too much uncertainty in this sphere.
As previously reported, Medici Ventures acquired a stake in the fintech startup Bankorus.