Overstock rises on plans for new blockchain venture

Overstock rises after reporting plans for new blockchain venture 

Overstock rises on plans for new blockchain venture. Stockwinners.com
Overstock rises on plans for new blockchain venture

In a regulatory filing last night, Overstock.com (OSTK) disclosed that on December 27 the company, its wholly owned subsidiary Medici Ventures, Patrick Byrne and Hernando de Soto entered into a Memorandum of Understanding that provides that the parties will form a company, “Desoto,” that will be owned 50% by Medici, 33% by Hernando de Soto and 17% by Patrick Byrne, who is the CEO and a member of the Board of Directors of Overstock, and also serves on the board of directors of Medici.

The goal of the new company is to develop a blockchain-based system to develop a global property registry system focused on the property rights of people in the developing world.

Overstock and/or Medici will pay or contribute $14M to help launch the project, $8M of which will be used to fund DeSoto, and Medici will receive a 50% ownership interest in DeSoto.

Patrick Byrne personally will contribute $14M to help launch the project, and will receive a 17% ownership interest in DeSoto.

Hernando de Soto will serve as Chairman of DeSoto and as a director of Medici. Patrick Byrne will serve as Co-Chairman and CEO of DeSoto, in addition to his positions with Overstock and Medici.

“The MOU contemplates a more detailed future agreement, and provides that the parties will cooperate in good faith to reach more detailed agreements in the future,” the filing added.

In pre-market trading, Overstock has risen $1.95, or 2.7%, to $73.50 per share.


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