What’s upcoming for the crypto-enthusiast firm Overstock.com following a partnership with Pelion Venture?
Overstock.com (OSTK) shares price is pushing upwards and trading past $85 today. OSTK stock has been trading with a strong bullish momentum since the start of the new year. As we write this, OSTK shares had soared 26.47% to $85.24.
The stock market has kicked off 2021 with much promise and seemingly the economic circumstances are going to get better with vaccine deployment. Moreover, the new era of the US government under Joe Biden is expected to help businesses with a smooth operational flow.
In the case of Overstock, the company has just announced to spin its blockchain subsidiary into a crypto investment fund—as its driven towards the future of blockchain.
The online technology retailer Overstock just announced that it will be converting its blockchain subsidiary, Medici Ventures, into a cryptocurrency-focused investment fund. An entity within Pelion Venture Partners will act as the general partner of the Fund.
The core objective to initiate this Fund is to maximize profits amid the crypto boom. As we know that the crypto market is full of potential and the future belongs to the new tech. Blockchain-based Bitcoin’s recent boom in the crypto market has once again attracted investors in big numbers.
Overstock’s Medici Ventures will become a limited partnership fund that will become operational after legal and regulatory approval. Overstock has had a keen look at blockchain and has made investments in digital technology since 2014.
The company is highly bullish on blockchain technology. Overstock.com knows how to create the highest return for our shareholders. The CEO of the company, Jonathan Johnson stated that they are looking forward to working with a seasoned venture capital firm to manage the new crypto investment fund.
Previously, Medici Ventures had managed Overstock’s investments in blockchain-related companies. Now, Medici will cease providing its usual services including design and software development services as well.
The fund is anticipated to operate for 8-years, which will revolve around a capital commitment of $45 million. Initially, Overstock will receive the fund’s profit before splitting it as per the limited liability partnership. Moreover, the fund will own a “notable” minority stake in the Overstock-owned tZero Group.
The company is also near reporting its next earnings report. Wall Street is expecting positive outcomes. Analysts have forecasted OSTK to post $0.27 earnings per share, which would mark a 136.99% rise year-over-year. While the revenue is anticipated to be $709.60 million, up by 91.33%.
Overstock.com (OSTK) has pulled a high potential deal with maximum risk—the fact that crypto is still a volatile market. But, if things go well which are as expected by the firm, then it will skyrocket the profit of Overstock.