Overstock Reports Over $100k in Bitcoin Losses for Q1 2015

UPDATE 25th June 0:00 UTC: Updated with comment from Overstock cryptocurrency group general manager Judd Bagley.

overstockUS retail giant Overstock lost $117,000 on its investments in cryptocurrencies during the first quarter of 2015, according to the company’s latest quarterly earnings report.

Overstock listed its cryptocurrency holdings as valued at $233,000, down from $340,000 on 31st December.

Long one of the largest merchants in the digital currencies space, Overstock had previously indicated that it was holding as much as 10% of its proceeds from such sales in bitcoin.

The filing suggests Overstock is still holding the funds in bitcoin, as it noted subsequent increases in the value of bitcoin could be recognized in later filings. What remains unclear is whether the company is still actively adding to its holdings from bitcoin sales.

In its latest SEC filing, the company noted that it receives all bitcoin payments via a third party denominated in US dollars.

The company wrote:

“At present we do not accept bitcoin payments directly, but use a third party vendor to accept bitcoin payments on our behalf. That third party vendor then immediately converts the bitcoin payments into US dollars so that we receive payment for the product sold at the sales price in US dollars.”

In addition to cryptocurrency, Overstock also holds nearly $10m in gold and silver as well as interest and equity in businesses that will help facilitate its plan to build a decentralized stock market.

Clarification given

Speaking to CoinDesk, Overstock cryptocurrency group general manager Judd Bagley indicated that the loss was primarily the result of declines in certain altcoin markets in which the company has invested.

“The swing in the value of our cryptocurrency holdings is attributable to the sale of some of our non-bitcoin cryptocurrencies, the use of some of our bitcoin to pay

Originally appeared at: http://www.coindesk.com/overstock-reports-over-100k-in-bitcoin-losses-for-q1-2015/

Overstock Reports Over $100k in Bitcoin Losses for Q1 2015 is a story from: BitcoinWarrior.net


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