Blockchain technology has gotten the attention of many traditional business owners in recent time. This is why there has been an increase in the number of people who are integrating blockchain technology in their business. While some are looking for ways to integrate the tech, others are looking for ways to completely convert their businesses. One of them is the CEO of Overstock, Patrick Byrne.
CEO of Overstock Talks About Turning The Company To A Blockchain Company
Patrick Byrne has always been a believer in blockchain technology. In fact, he has openly confessed that he would prefer if he was running a blockchain business rather than an e-commerce business. Speaking to CNN on Friday, Byrne said:
“It’s still confusing to most people – even our own investors. Very few have done their homework.”
Bryan acknowledged that many people, including Overstock investors, still don’t know what it means to make it a blockchain company. He said that a detailed report will be released in March and it would include a vivid explanation of what he means.
Already, Overstock has entered into the blockchain space. A while ago, the company launched Medici Ventures. Medici Ventures is a blockchain-focused investment firm. It also announced that it is developing tZero security tokens based on blockchain technology which will be used for trading and e-commerce.
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In 2017, during an interview with CNBC, Byrne said that his goal is to reinvent the core of Overstock’s business within 90 days so that he could make it a complete blockchain business. Unfortunately, he didn’t make the move. Last November, he said that he was making plans to leave the online retail space. Speaking to the Wall Street Journal, he said that he intends to sell the company by February 2019. Shortly after then, the company’s shares increased by over 20%. February is about to end and the company is yet to be sold. The shares, which spiked by 20%, are now down by 9%.
The blockchain community is focused on how Overstock will become a full blockchain business. However, Wall Street is less concerned about that and more focused on when Byrne intends to sell and who the company will be sold to. Some experts have suggested that Walmart might buy Overstock. This would not be a surprise since Walmart has made many similar acquisitions over the years.
The Blockchain Move May Pay Off For Byrne
The online retail market is highly competitive. Overstock has reportedly been losing money for a while. Right now, the company has a market capitalization of about $650 million. If Byrne is ready to sell this company and move fully into the blockchain space, it means he sees strong growth potential in the space.
A reputable research analyst, Bill Baker, said he believes that Overstock is making a good call by trying to focus on the emerging blockchain technology which is growing rapidly. This, according to Baker, is better than focusing on the online retail business that is so challenging. He said that Medici and tZero might cause a rally for stock.
Byrne, during his interview with CNN, talked about how frustrating it is to remain in the online retail business. He made reference to a rival company, Wayfair. This company, according to Byrne, has lost almost $1 billion within the last three years. Byrne concluded by saying that there is no point competing as the retail space is too expensive.
What do you think Byrne will convert Overstock to? Share your thoughts.