Overstock CEO Issues Statement Regarding The Sale Of His 900,000 Shares Of The Company
Overstock CEO Patrick Byrne recently sold 900,000 of his shares which led to the stocks of his company falling by 16%.
Patrick felt the need to address this to the investors in his company. He wrote a letter to shareholders in his company after he old 500,000 of his shares. Byrne said he had sold an additional 400,000 shares.
In all, Byrne recently sold 900,000 “founders shares,” amounting to more than 15% of his stake in the company. Overstock’s shares rebounded 3% on Friday.
“I simply had to supplement my nominal salary with stock sales in order to fulfill personal commitments to invest personally in blockchain projects such as Medici Land Governance, along with a need to meet charitable pledges. I do not intend to ever give such an explanation again. I owe shareholders staying within the law and not making decisions based on inside information, not explanations of my life and projects outside Overstock.”
The CEO, who famously battled short sellers — even comparing one to a “Sith Lord” — claimed in the nearly 750-word missive that he told investors last year he would be selling stock but was unable to facilitate the sales because he often has inside information.
“Frankly, I had no idea that shareholders would demand explanations of why and how I might want to use my cash derived from my labor and my property to pursue my ends in life. Not once have I ever asked a shareholder for his reasons in any decision he made. Yet, given the consternation this has caused, I will give answer, to preclude further recurrence of mass vapors.”
Overstock’s shares have plunged nearly 90 percent after reaching a peak of $86.90 in January 2018 amid cryptocurrency mania.
The company, which was founded in 1997 as an online retailer of returned and overstocked merchandise, began accepting bitcoin as a payment in 2014. Byrne has since intensified his focus on cryptocurrencies and has claimed since 2017 that he plans to sell the e-commerce company.