Patrick Byrne, CEO of Overstock, sold 1/10th of his shares in the company worth over $20 million. In an open letter, he reminded the company’s investors that he is “still in the game.” He suggested that he sold the stocks to fund some sidecar investments. In the week during the sale, the company’s stock price fell by 12 percent.
What Did Byrne Say?
The CEO of e-commerce turned blockchain company wrote an open letter to the company’s investors. He said:
“I’ve cashed in 1/10 of my chips (most of it, to reinvest next to you). Don’t worry, I’m still in the game, and we’re going to bring this House to its knees.”
According to a Form 4 filing with the Securities and Exchange Commission (SEC), Byrne sold his stocks for roughly $15.8 million last week (Thursday and Friday) and an additional $4.9 million worth this Monday. His sell-off coincides with a 12-percent fall in the company’s stock price.
However, his move wasn’t unplanned. He talked about the plan in a March filing with the SEC. He said:
“I am eating a double dose of my own cooking, as months ago I promised you I would.”
Why Did Byrne Sell?
In the letter, Byrne gave reasons why he sold his stocks. He said that he would be reinvesting most of his money into two co-investments with Overstock and Medici Ventures, the company’s subsidiary. He also talked about the business model of Medici Ventures, claiming it is “playing out beautifully.”
In the letter, he made reference to his professors, saying that he will honor them soon. Furthermore, he suggested that he has to “pay Uncle Sam his cut.” He has been in the company for the past 18 years. The last time he sold his stocks was 10 years ago. Byrne signed the letter as “your humble servant.”
Overstock is one of the many companies that shifted its focus to blockchain when interest in this field of technology started rising. The Salt Lake City based e-commerce business has previously sold home decor, furniture, and jewelry but recently started an aggressive campaign in blockchain with Medici Ventures. Byrne previously said that the company could be reorganized or the e-commerce business could be sold to make way for a blockchain-based organization.