The ICO to unfold in phases
Overstock’s (OSTK) majority-owned cryptocurrency exchange operator, tZERO, recently launched its long-anticipated ICO (initial coin offering)—the cryptocurrency world’s version of a stock IPO (initial public offering).
The tZERO ICO is planned to unfold in two phases, with the first phase called Pre-Sale Period and the second phase called the Subsequent Sale Period. The Pre-Sale Period commenced on December 18 and is expected to run until January 18, 2018. During this first phase, tZERO expects to enter into agreements with strategic purchasers identified as accredited investors.
When the Pre-Sale Period is complete, the Subsequent Sale Period is expected to commence on January 18 and run through February 16, 2018. During this second phase, tZERO would enter into agreements with other accredited investors.
Bringing transparency to capital markets
“I am confident that prominent investors from around the globe will propel tZERO toward achieving its mission of bringing greater efficiency and transparency to capital markets,” Overstock chief executive Patrick Byrne said of the ICO.
The tZERO ICO is expected to raise $250.0 million.
Incubator of blockchain technology
Overstock is primarily an e-commerce company competing with the Amazon (AMZN), eBay (EBAY), and Groupon (GRPN) for online shoppers. Overstock is also an active investor in blockchain, the technology that underpins cryptocurrencies such as bitcoin. As such, Overstock also describes itself as an incubator of blockchain technology.
According to a report by CB Insights, Overstock is the third-most-active corporate blockchain investor. It only ranks below Japan-based (EWJ) venture capital firm SBI Holdings and Alphabet’s (GOOGL) Google by the number of blockchain startups backed since 2012.
Overstock generated $424.0 million in revenues in 3Q17.