Overstock is reportedly planning to sell its retail arm for a not so surprising reason. According to The Wall Street Journal, founder and CEO Patrick Byrne wants to focus on blockchain. Overstock shifts to blockchain as its core strategy, aiming to strengthen its position in this emerging technology. The sale is expected to happen early next year.

Byrne did not name any interested buyers or disclose deal terms. However, he told the WSJ he expects to finalize the sale by February 2019. Byrne has been planning this since 2017 to focus solely on blockchain projects.

The WSJ also reported that Medici Ventures, Overstock’s blockchain subsidiary, caused most of the company’s losses. Medici lost $22 million in 2017 and $39 million in the first nine months of 2018. Overstock’s overall losses in 2018 reached $163.7 million.

Despite the losses, Byrne remains positive about blockchain. He said, “I don’t care whether tZero [a Medici project] is losing $2 million a month. We think we have cold fusion on the blockchain side.”

Overstock’s blockchain projects success

Recall that Overstock came into being in 1999 as a means of selling returned and excess merchandise online. In 2014, the company acquired pioneer status in the crypto industry when it became one of the major retailers to accept payments in Bitcoins (BTC).

Some of the projects embarked upon by Medici this year included “a remote blockchain-based voting in the US state of West Virginia.” Thanks to Voatz, a decentralized mobile platform, 144 overseas-based military personnel from 24 counties were able to cast their votes in the 2018 midterm elections. In spite of the numerous concerns about the security of Voatz, the experiment has adjudged as a success by West Virginia officials.

A blockchain-based land registry platform in Zambia is another project launched by Overstock. Under its subsidiary, Medici Land Governance, the company collaborated with the Zambian government to “develop a system of decentralized land ownership, allowing rural landowners to legitimize their estates and gain access to the financial world.”

In conclusion

Patrick Byrne, Overstock’s founder and CEO, has disclosed plans to sell off the retail arm of the company so as to focus solely on blockchain projects. Overstock shifts to blockchain as its primary focus, reflecting Byrne’s commitment to advancing the company’s blockchain initiatives. Byrne revealed to The Wall Street Journal that the sale is expected to be concluded by February 2019.

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