Overstock Ramps Up Blockchain Spending With $8 Million Q1 Loss

0

Medici, the blockchain know-how arm of on-line retailer Overstock.com, is already on tempo to exceed its 2016 spending on distributed ledger R&D.

Revealed last week, Overstock reported an $8m pre-tax loss associated to the trouble for Q1 2017, a determine that was up from the $3m loss it noticed in This autumn 2016, and down barely from the $11.8m loss it noticed for fiscal 12 months 2016.

But, the submitting additionally confirmed that ‘loss’ is maybe greatest seen as an funding within the agency’s technique to disrupt Wall Street.

As the paperwork present, nearly all of the loss was tied to a $four.5m impairment cost related to Overstock’s funding in blockchain startup Peernova. Overstock invested $5m within the agency in March 2015.

As such, public statements discovered Overstock CEO Patrick Byrne putting a constructive notice, arguing that the corporate believes it’s investing right into a know-how pattern that can drive long-term worth for shareholders.

Byrne mentioned:

“I remain confident that we are doing the right thing for our shareholders by having Medici pursue a position of global leadership in blockchain technology.”

That Medici is spending cash is unsurprising, in any case, final fall it launched its long-awaited sale of blockchain-based securities, netting a complete of $10.9m. That transfer got here greater than a 12 months after the sale of the primary ‘crypto-bond’ for $5m.

Overstock has been energetic within the blockchain trade since early 2014, when it turned one of many first retailers to just accept bitcoin.

For extra particulars, revisit Medici president Jonathan Johnson’s look back at the decision in our new “Bitcoin Milestones” essay sequence.

picture by way of Overstock

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here