The e-commerce dark horse, Overstock.com, has experienced stock shares soar as a result of their acceptance of bitcoin and blockchain. Speculation in digital currency has mirrored its effect on Overstock’s shares. According to a CNBC article, the company closed Tuesday up about 11.6%. It briefly soared 14 percent prior to that close.
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The CNBC article elaborated: “Shares of Overstock.com closed up nearly 11.6 percent Tuesday after briefly surging more than 14 percent. The stock has hit four-year highs on mounting excitement around the company’s venture into blockchain, the technology behind bitcoin.”
Bitcoin’s Impact on Company Shares
Overstock’s share price has begun to skyrocket alongside other company’s interest in blockchain as well. For instance, IBM and JPMorgan Chase have declared interest in the nascent technology. They recently announced interest in building blockchain payment networks or accepting bitcoin.
Furthermore, bitcoin has “shot up six times in value” this year, according to the article. Interestingly, overstock’s share price has mimicked the short term volatility of bitcoin. It seems to surge and then decline with intense ferocity in the same manner as a crypto market.
Overstock’s shares swing with a volatility resembling the speculation often seen in digital currencies like bitcoin. A high 14 percent of shares available for trading are also sold short, or in anticipation of a decline in price, according to FactSet.
Overstock’s Foray into Blockchain
The company has been building its bitcoin and blockchain acceptance strategy for awhile now. Overstock.com was one of the first major company’s to begin accepting online bitcoin payments. They were also the first to start accepting a wide array of crypto payments by integrating Shapeshift functionality. News.Bitcoin.com covered the news when it broke.
“Overstock just became the first major retailer to accept bitcoin cash and altcoins at the point of sale for payment. They announced a partnership with Shapeshift.io to streamline the process. Now Overstock customers can transact via Shapeshift’s native API easily using Bitcoin Cash, Monero, Litecoin, Ethereum, and more.”
The company’s CEO, Patrick Byrne, started a whole division for utilization of blockchain within Overstock. Over the last three years he developed this division, which is called Medici Ventures. According to the CNBC article, it has emerged as a front-runner in applying blockchain technology to trading stocks and digital tokens.
Overstock’s stocks have a market capitalization of $830 million, with ample room for more growth.
What are your thoughts on Overstock’s soaring price shares? Does this mean company’s that leverage bitcoin and blockchain will benefit off of this new economy? Tell us in the comments below!
Images courtesy of Shutterstock
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