Translator: Play the coin family ElaineHu
Overstock CEO and cryptocurrency enthusiast Patrick Byrne believes it is necessary to defend the approximately founder shares of the approximately 900,000 shares of Overstock. Byrne wrote a letter explaining his decision because it was reported that his choices had panicked insiders and caused Overstock's share price to fall by about 16% earlier this week.
Overstock share price rebounded after experiencing decline
After Patrick Byrne revealed that he had sold 900,000 shares, Overstock's share price was under huge downward pressure.
Byrne explained in an open letter that he is investing in Overstock while investing in blockchain projects, and he needs the money to fulfill his promises, including his commitment to philanthropy.
Although this news has a clear correlation with the price changes, it is worth noting that the market has generally fluctuated in general.
This is not the first time Patrick Byrne has made headlines by selling company stock. When he sold $20 million worth of stock last year, he assured investors that everything was fine. Byrne explained in his letter that he could not sell stocks for most of the past year, because the information he had made would make him unethical.
Byrne was angry that someone had questioned his right to sell shares, and he said he did not intend to defend himself.
He wrote: “I need to be accountable to shareholders, including compliance with the law and not making decisions based on internal news, but not including explaining my life and projects other than Overstock.”
The company is worth $350 million and the CEO has an annual salary of $100,000.
Patrick Byrne defended his sale of shares, noting that his $100,000 salary was the lowest in a company like Overstock.
Byrne said he needs money to subsidize his annual salary and invest in several blockchain projects. His salary is one of the company's lowest pay, even after the recent stock price decline, the company's market value still exceeds 360 million US dollars.
“A year ago, I told shareholders that I would sell stocks on a large scale to fund various projects. Since then, I have invested $12.5 million in blockchain projects, of which about two-thirds directly relate to the company. The investment together (so I not only did not betray the company's shareholders, I have reason to ask for double returns). I have donated and promised to donate about $50 million to charity."
"We recently discussed the first quarter of 2019 through a conference call and a shareholder meeting. From the stock price recovery, the market is very optimistic about our first-class e-commerce platform and the profitability of Medici Ventures. I think so. I just Replenish my annual salary through stock sales to fulfill my personal commitments, invest in blockchain projects such as Medici Land Governance, and the need to meet charitable commitments."
Overstock previously announced that it will sell its retail business, focusing on the blockchain venture capital business, but the company seems to have canceled these plans.
The complex relationship between OVERSTOCK and the entire encryption market
The "blockchain revolution" is more important than anything we have seen in history.
-Overstock CEO https://t.co/XtuoEW5DHc
– CCN.com (@CCNMarkets) November 27, 2018
Overstock was one of the first large retailers to accept cryptocurrencies, and its CEO actively supported cryptocurrencies, and the company performed exceptionally well in the 2017 encryption boom. However, like other companies in the encryption market, the company's share price has fallen more than 80% since its January 2018 high.
When Byrne announced that the company would aggressively enter the blockchain, investors responded enthusiastically, but Medici Ventures, a subsidiary focused on encryption, has been slow. When the company disclosed that it was involved in a US Securities and Exchange Commission (SEC) investigation of encryption-related companies, its share price fell.
According to reports, Overstock also has a long and complex relationship with the entire market.