Overstock.com CEO Makes Historic Purchase of a Digital Bond Issued on Bitcoin's Blockchain
SALT LAKE CITY, June 8, 2015 (GLOBE NEWSWIRE) -- Overstock.com, Inc. (Nasdaq:OSTK) announced its CEO Patrick M. Byrne today made the first purchase of the world's first cryptobond for $500,000. Working with other qualified institutional buyers, the company intends to sell a total of $25 million in digital bonds to trade on a cryptographically-protected distributed ledger – the same technology that underlies cryptocurrencies such as bitcoin.
"It's not exactly Jonas Salk injecting himself with his polio vaccine, but I wanted to own the first cryptosecurity ever issued," stated Byrne. "I intend to demonstrate my belief not just in Overstock, but in the TØ.com platform that we built and, indeed, in the cryptorevolution itself."
This pioneering event is part of Overstock.com's larger cryptofinance initiative known as Medici, and uses the company's own TØ.com platform. TØ.com is powered by the blockchain and the Open Assets protocol.
Those who purchase cryptobonds through TØ.com will be able to track their ownership on the bitcoin blockchain. Trades on TØ.com securely settle same day, as opposed to the customary three day settlement on Wall Street (referred to as "T+3"). According to Byrne, issuing the TIGRcub bonds on the TØ.com platform proves that cryptotechnology can facilitate transparent and secure access to capital by emerging companies.
This offering is being made exclusively to qualified institutional buyers that meet the definition of "accredited investor" in compliance with Rule 506(c) of Regulation D under the Securities Act of 1933, as amended.
Overstock.com, Inc. (Nasdaq:OSTK) is an online shopping retailer based in Salt Lake City, Utah that sells a broad range of products at low prices including furniture, rugs, bedding, electronics, clothing, and jewelry. Worldstock.com is a fair trade department dedicated to selling artisan-crafted products from around the world whereas Main Street Revolution supports small businesses across the U.S. by providing them a national customer base. Overstock has additional community-focused initiatives such as a Farmers Market and pet adoption service. Forbes ranked Overstock in its list of the Top 100 Most Trustworthy Companies in 2014. Overstock sells internationally under the name O.co. Overstock (http://www.overstock.com and http://www.o.co) regularly posts information about the company and other related matters under Investor Relations on its website.
O, Overstock.com, O.com, O.co, Club O, Main Street Revolution, Worldstock Fair Trade, Worldstock, and OVillage are registered trademarks. O.biz, Club O Dollars, OGlobal, and TØ.com are trademarks of Overstock.com, Inc. The Overstock.com, Club O, and Worldstock Fair Trade logos are also registered trademarks of Overstock.com, Inc. Other service marks, trademarks and trade names which may be referred to herein are the property of their respective owners.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include all statements other than statements of historical fact. Additional information regarding factors that could materially affect results and the accuracy of the forward-looking statements contained herein may be found in the Company's Form 10-Q for the quarter ended March 31, 2015, which was filed with the SEC on April 29, 2015, and any subsequent filings with the SEC.
Read more: http://investors.overstock.com/phoenix.zhtml?c=131091&p=irol-newsArticle&ID=2056957
CONTACT: Media Contact:
Kirstie Burden, Overstock.com, Inc.
+1 (801) 947-3116
Mark Harden, Overstock.com, Inc.
+1 (801) 947-5409