The founder of Overstock sells everything to invest in cryptocurrencies and gold.
The eccentric former CEO of Overstock.com Inc., Patrick Byrne, sold all of his shares in the company he founded and said he would invest the profits in both gold and cryptocurrencies.
Byrne collected almost 5 million shares for an amount close to USD 90 million, according to a regulatory presentation made on Wednesday night. Sales began on Monday after a 65% increase brought the stock to its highest level, since September 13 last year. The stock fell 20% that day and has fallen 35% so far this week. The shares as a whole fell to 8.9%.
Byrne, 56, through a blog post on Wednesday and entitled A message to my former colleagues in Overstock, said he planned to invest on Friday all the gains in values that are “countercyclical for the economy,” including gold , silver and two types of cryptocurrencies, and he also added that he would be willing to provide a “capital injection, if necessary, by buying again from Overstock”, once he is legally allowed to do so.
Byrne formalized his resignation as CEO of Overstock last month after comments about the “Deep State” and his participation in a spying investigation by the government. In the blog post on Wednesday, he said he resigned after insurance brokers opposed the possibility of covering Overstock while still serving. The presentation came on the same day the company delayed its plan to issue a “digital dividend” and formally register the new shares.
According to the publication, Byrne has sold its shares at increasingly lower prices in the last three days, ranging from USD 21.84 at the beginning of the week to USD 16.32 on Wednesday.
The analyst Tom Forte, belonging to D.A. Davidson wrote in a research note “We see this as something tremendously positive.” He added that Overstock should be beneficial to develop a greater distance between Byrne and the end of its divestment, which should eliminate part of the recent selling pressure shown on the shares. Forte has a purchase rating and is one of only two Wall Street analysts that cover the company.
It is important to indicate that Overstock delayed the distribution of dividends on Wednesday in order to dispel concerns that it would not be liquid, which could entail some transactions if it were only negotiated at the company’s affiliated broker. Registering it would allow it to operate more widely, and the company also plans to eliminate a six-month close on new shares.
Short sellers, for example, would have found it difficult to fulfill their obligation to deliver the dividend of the shares supplied to the lender. That obstacle caused a contraction that increased Overstock shares by 65% during the previous two weeks.
Byrne’s departure, which occurred last August, came after a series of public announcements in which he cited entanglements with the “Deep State”, which included cooperation with law enforcement officers whom he called “men in black “, as well as with his” Clinton investigation “and” Russia investigation “. Byrne said he had been romantically involved with Maria Butina, a Russian agent jailed for not registering as a foreign agent. The founder of Overstock had previously fought the short sellers of Wall Street for two decades.
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