How Overstock learned to love retail again
CEO Jonathan Johnson discusses why he brought the company back to its e-commerce roots and away from the blockchain experiments that infatuated his predecessor. Published May 17, 2021 Retrieved from Overstock on May 12, 2021
In early 2014, Overstock became the first online retailer to accept the crypto currency bitcoin as payment for goods. After interviewing him, tech magazine Wired wrote at the time that then-CEO Patrick Byrne believed that accepting bitcoin payments could ultimately boost the company s bottom line.
The executive would go on to create a new unit within Overstock dedicated to blockchain, the technology underlying crypto currencies. In the years following, the company s bet on blockchain would lose the company many millions of dollars out of its bottom line.
Author Bio
Reuben Gregg Brewer believes dividends are a window into a company s soul. He tries to invest in good souls.
What happened
Shares of
Overstock.com (NASDAQ:OSTK) were higher by around 10% at 2:30 p.m. EDT on April 30. That follows a notable gain on April 29, driven largely by earnings. While some of today s price advance probably represents a continuation from the positive quarterly update, there s another factor that might be more important.
So what
Investors looking at the price action in Overstock.com today shouldn t discount the good earnings news yesterday. After all, the company s first-quarter 2021 revenue increased an incredible 94% year over year. Adjusted earnings improved by some $0.90 per share, going from red ink to $0.54 per share of black ink. That s a pretty good showing, but there s another wrinkle here that long-term investors need to understand.
Operator
Good day, and thank you for standing by. And welcome to the Q1 2021 Overstock.com, Inc. earnings conference call. [Operator instructions] Please be advised that today s conference is being recorded.
[Operator instructions] I would now like to hand the conference over to your speaker today, Ms. Callahan, director of investor relations. Please go ahead.
Alexis Callahan
Director of Investor Relations
Thank you, operator. Good morning, and welcome to Overstock s first-quarter 2021 earnings conference call. Joining me today are Jonathan Johnson, CEO; and Adrianne Lee, CFO. Dave Nielsen, our president of Overstock, will also be available for Q&A.
Please note that we are conducting today s call remotely. Let me remind you that the following discussion and our responses to your questions reflect management s views of today, April 29, 2021, and may include forward-looking statements. Actual results may differ materially. Additional information about factors that could potent
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Overstock Reports that its Transfer of Blockchain Investments to Pelion Venture Partners is Complete
Overstock (NASDAQ:OSTK) has announced that its blockchain subsidiary,
Medici Ventures, has been successfully transferred to
Pelion Venture Partners.
In early 2021, Overstock announced that had migrated Medici Ventures to a limited partnership while partnering with
Pelion Venture Partners to act as the general partner of the fund. At that time, Overstock said it would be a limited partner in the fund. The shift in strategy was a dramatic retreat away from blockchain technology and a firm commitment to Overstock as a standalone e-commerce platform. Under former CEO and founder Patrick Byrne, the company was aiming to exit e-commerce and focus solely on blockchain technology.