Crypto Enthusiast And Overstock CEO Sells His 10% Stake
Patrick Byrne, the executive director of a large retailer Overstock, which was the first to accept bitcoin as a payment, sold 10% of its shares, CNBC reported.
In accordance with the information listed in Form 4 of the US Securities and Exchange Commission, Byrne first sold the stake of $15.8 million, and a few days later – of $4.9 million. After that the company's share price immediately decreased by 12%.
Patrick Byrne (source: ostkcdn.com)
Initially, the head of Overstock appeased investors and stated that he continues to take part in the development of the company. In a public letter to investors, with the caption "your humble servant," he highlighted a number of reasons that prompted him to take such a step.
First, in the next few days, Patrick Byrne intends to reinvest most of his funds in two projects of Overstock and its subsidiary Medici Ventures. The overstock subsidiary was created in 2014 specifically to invest the company's assets in blockchain projects.
The second reason why Byrne sold his shares is to fulfill some of his accumulated tax liabilities. At the same time, he expressed regret that OSTK shares fell in price on the NASDAQ stock exchange.
For all 18 years of work at Overstock, the executive director sold only a small part of the shares, despite the fact that he did not receive a salary over many years of work. Over the past few months, Byrne received a remuneration of $100,000, not to be one of the "dumb people" who refuse it, as he explained.
As previously reported, the Hong Kong-based company GSR Capital is investing in the blockchain startup tZERO, the Overstock subsidiary.