Patrick Byrne, CEO of giant retail company Overstock.com, believes that the firm’s retail arm can remain profitable even as they pursue blockchain endeavors. The CEO’s statements show that Overstock is not ready to divest from its retail aspect as previously mentioned. Last year, based on reports from The Wall Street Journal, Overstock would decide to sell off its retailing arm by early 2019.
During that part of the conference call when retail was discussed, Byrne said that this year would be a great year of growth for the company. He also said that the retail wing would produce so much cash. The CEO made a prediction that the film would make $115 million better compared to 2018. He believes that from that amount, $33 million will be derived from retail tech improvements as well as expense management adjustments. He adds that $82 million will be a result of improvements when it comes to retail contribution.
In order to explain the long waiting time for the retail sale, Byrne revealed that the timeline is never fixed. He said that selling a company can be likened to a soufflé. The soufflé is ready only at the exact time that it is ready. You can’t force it to be ready, or you cannot yell at it.
From Retail to Blockchain
The executives of Overstock including Byrne know that the firm has transformed from a retail enterprise into a blockchain portfolio company. This was made possible by tZero and Medici Ventures, which are the firm’s subsidiaries.
The income that will come from the retail wing of overstock will prove useful in support of its foray into cryptocurrency and blockchain technology. In fact, recently, Overstock reported to the United States Securities and Exchange Commission that they have plans for tZero and Medici too. But these will require additional funding.