Overstock has come out to reassure investors that they remain committed to cryptocurrency. The online retailer’s shares suffered after the firm’s long time CEO, Patrick Byrne, resigned from his position.
Bryne’s resignation came after he made comments about being involved in FBI investigations into the 2016 election. He went on to say that the FBI ordered him to get involved with a Russian spy and this compounded the pressure on him.
Bryne’s resignation was announced on the 22nd of August in a shareholder letter. The letter suggested that the controversy surrounding Bryne makes him unfit to continue as the head of the firm.
Share price drop
After Bryne’s comments went public, Overstock’s share price fell by over 35%. The stocks have started recovering after his resignation was announced.
Investors were left questioning Overstock’s overall position with regards to the business, and whether the firm itself has been tainted by the activities Bryne claims to have been involved in.
Commitment to cryptocurrency
Overstock has become one of the leading firms in the crypto industry. The company is well known for its support for cryptocurrency, Bitcoin especially.
According to Overstock’s newly appointed CEO Jonathan Johnson, they plan on maintaining the legacy which was started by Bryne. The company remains supportive of Bitcoin and cryptocurrency trading, as was the case under Bryne.
Johnson said that the blockchain business is doing well and the company will maintain its focus on blockchain and crypto. He added that their team at Medici Ventures is still working on their projects and that the Medici family is growing at a steady pace.
Medici Ventures is a blockchain focused business and the continuation of their operations reflects that Overstock is still focused on its crypto and blockchain initiatives.
The assurance that the company is committed to its cryptocurrency and blockchain position comes after Overstock suffered a 23% decrease in revenue.
The revenue decrease is in contrast to Johnson’s claims that the companies in the Medici family are growing. Overstock’s investors will be hoping that Johnson can steer the firm towards increased revenue.
Some recent developments around Overstock may work in the company’s favor and give it the boost it needs to grow its revenue and share price. In July, Overstock announced that they would be launching a digital equivalent of its dividend for their shareholders.
To add to this, the firm’s tZero platform was recently opened for trading to retail investors. These moves will increase investor interest in Overstock and they can expect positive returns as a result.