Internet Retailer, Overstock, Completes OSTKO Digital Dividend Distribution to Use on tZERO's Alternative Trading System (ATS)

  • Overstock successfully completes its “digital dividend” despite an ongoing court battle.
  • The dividend was distributed in OSTKO tokens and will only be available to be traded within its own tZero crypto exchange platform.
  • The U.S. based internet retailer faces a lawsuit on possible damages the dividends distribution action may have had.

In a statement from Overstock, the company completed the first blockchain-based stock dividend offering to its Digital Voting Series A-1 Preferred Stock (“Series A-1”) owners. The dividend was distributed in a ratio of 1 OSTKO token to every 10 OSTK preferred security tokens owned as of April 27th, 2020. This becomes the first of its kind in the blockchain field aiming to boost the liquidity of its base exchange, tZero. A total of 4.37 million OSTKO tokens were distributed.

However, to the disappointment of some of the shareholders of the OSTK stock, Overstock announced the OSTKO token dividends released will only be available to trade on the tZero Alternative Trading System (ATS) exchange in a bid to boost liquidity on the base platform. Overstock CEO, Jonathan Johnson shared his pleasure at the first-ever successful digital dividends to shareholders. He said,

“These preferred shares have real value and have been paid a cash dividend in each of the last three years. We believe they will increase participation and long-term liquidity on the tZERO ATS platform.”

The company’s top management in the past has been at constant war with short sellers of the stock and Wall Street in general. In late 2019, the former CEO of Overstock, Patrick Byrne, and former CFO Greg Iverson was sued for security fraud in their dividend payouts. Despite registration with the U.S. Securities Exchange (SEC), the firm is yet facing another lawsuit from The Mangrove Partners Master Fund on the current dividend payout.

The plaintiff claims the company is currently punishing short sellers by interfering with markets with the effect the airdropped OSTKO tokens would have on the price of the company’s stock. They claim damages from the company on the price rise that caused a short squeeze eating into their profits.

The OSTKO dividend payouts were distributed through ComputerShare, the company’s transfer agent to the investors’ trading brokerage firms, and the connected accounts that hold their OSTK security token.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Goldman Sachs’ Lazy Bitcoin Assessment is Embarrassing

Crypto community has been eagerly awaiting Goldman Sachs’ client call today in which they were to discuss bitcoin. But it all turned out to be...

Crypto Derivatives Exchange ErisX, Opens API Service for BCH, BTC, ETH, and LTC Block Trading

ErisX REST API will now grant registered clients access to their Block Trade platform. This will be a reserve for the Institutional investors...

Polkadot’s Chain Candidate Goes Live in Anticipation for the Proof of Stake (PoS) Version

Polkadot's initial mainnet has been launched by Web3 Foundation and Parity Technologies according to a blog post on May 26. This much anticipated sharding...

Bitfury Announces Bitcoin Mining Investment Program For Institutional Clients

Bitfury, one of the oldest Bitcoin mining firms established back in 2011, has announced a Bitcoin mining investment program for institutional investors on May...

7 Bullish Ethereum Charts that says Ether is “Significantly Undervalued”

The price of Ether might still be struggling around $200 but its fundamentals are screaming bullish. Post Black Thursday sell off, Ether has been seeing...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today