Overstock Registers Its OSTKO Blockchain-Based Stock with The SEC; First Step Towards Adoption
Online retail giants Overstock has registered with the U.S. Securities and Exchange Commission (SEC) for a blockchain-powered digital preferred stock, in a move which the firm hopes will result in the approval of the regulator.
Leading e-commerce website sells a broad range of new products at low prices, including furniture, décor, rugs, bedding, home improvement, and more. They were the first major retailer to accept cryptocurrency in 2014, and in the same year founded Medici Ventures, its wholly-owned subsidiary developing and accelerating blockchain technologies to democratize capital, eliminate middlemen, and re-humanize commerce.
The new CEO of the firm, Jonathan Johnson says:
“This filing represents an initial step in the company's registration of the OSTKO dividend, and the company is engaged in active discussions with regulatory authorities to obtain approval of the registration.”
The Series A-1 preferred digital stock is to be awarded to common shareholders in a ratio of 1 unit for every 10 shares, which will allow holders to transfer their shareholdings on the blockchain. Shareholders are to receive one share of Series A-1 preferred stock for every 10 shares of Overstock common stock, but they must set up an account with Dinosaur Financial Group to access an alternative trading system called PRO Securities that is operated by Overstock's blockchain subsidiary, tZero.
It comes at a time of a fundamental shift in Overstock’s business towards blockchain, following disappointing results in its core retail business in recent months.
The company expects that, through registration of OSTKO, non-affiliated shareholders will immediately be able to freely trade the digital shares without any holding period requirement. The company will provide further updates regarding the OSTKO dividend as they become available.