The Ex-CEO of the Overstock, Patrick Byrne has sold all of his 13% stake in the company in the price of $90 million in exchange for cryptocurrency and gold. Byrne left the post of CEO very dramatically on 22 August and its value dropped the shares of Overstock by almost 4.8-5 million. The news was reported by 19 September by MarketWatch, American Financial publication that the value worth over 13% stake.
Also interesting he sold his shares in three sessions including $21.84 on 16th September to $16.32 on 18th September. In this three-session, he totally sold around $90 million in the open market. Interesting he blamed this all on Securities and Exchange Commission (SEC) and he also said that it is a “the Deep State’s pets.” He sold his stakes in lower and lower prices in the SEC filing on Wednesday and also there is a remainder provided to an unidentified recipient.
Last month, while resigning from his post of CEO he told Forbes that he will hold his stakes in the company and stated that, “great, great enthusiasm for the prospects of the company.” On the other hand, Byrne said in a circulated open letter that he will now go for gold, cryptocurrencies, and silver and also suggested these investments as “countercyclical to the economy.”
He further said that these assets’ value will increase and these could help out the capital of the Overstock. He said,
“You will have not just access to capital, you will have access to the friendliest capital imaginable: my own.”
He resigned from his position after the disclosing of the news that he had been engaged as a federal informal in the case of the accused spy of Russia, Maria Butina. He also said in his resignation letter, he wrote about “certain government matters” as complex “all manner of business relationships from instability to strategic discussions regarding our retail business.” On the other hand, he recently picked interests in cryptocurrency and blockchain technologies. He stated about crypto,
“The crypto is stored in the place where all crypto is stored: in mathematical mist, behind long keys held only in the memory of someone who is quite good at storing such things in memory.”
Also, the Overstock’s share dropped by the 52-week high previous week among the future specially divided scheme of next week. After Byrne sold his stakes than the shares of OSTK dropped reportedly by 21% on 16th September, then 11% on 17th September and 8% on 18th September. Yesterday also the value of the share of OSTK is decreased by 3.5% and trading at the value of $15.60.
However, the interim CEO of Overstock said that Byrne’s leaving the company has nothing in the regulatory investigator which is going the authority of SEC. It was first disclosed in December 2017. However, somehow the Overstock has also affected by the exit of Byrne as one of the important corporate traders in the subsidiary blockchain technology ‘tZERO’ leave the company investment after 4 days.