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Overstock.com Completes Offering of Blockchain Shares
December 19,
2016 by Larry Thomas in Business Strategy, Industry 
E-commerce heavyweight Overstock.com (NASDAQ: OSTK) said it has completed a rights offering of two series of preferred stock – one of which will trade digitally on an alternative trading platform using blockchain technology.
The company said the rights offering raised about $10.9 million, not counting fees and expenses.
The company said about 18% of the 695,898 shares sold are classified as Series A Blockchain shares that will trade on a digital platform called t0 that was developed by Medici Ventures, an Overstock.com subsidiary.
The remaining shares, called Series B shares, should begin trading this week on the over-the-counter market, the company said
“This offering is historic in that we have successfully issued public securities that exist only on a blockchain,” said Overstock CEO Patrick Byrne. “In doing so, we have demonstrated to the world that there is indeed a path toward applying blockchain technology to capital markets in a way that complies with regulatory requirements and is accessible and practical for both issuers and investors. In the process, we raised a meaningful amount of capital, which Overstock can use to continue fueling our growth.”
Source Capital Group, Inc. served as the dealer-manager for the rights offering.
“An enormous amount of work went into this offering,” said Jonathan Johnson, chairman of Overstock’s board of directors and president of Medici Ventures. “We created new technologies and formed novel partnerships while shattering formidable barriers.”