Overstock Declares Stock Dividend of New Blockchain-based Shares

My first try using D-Like so let’s see how this goes! Excited to continue expanding the utilization of the Dapps at our disposal as part of the Steem blockchain!

The publicly traded Company Overstock.com release a statement today announcing a Stock Dividend that will deploy one share of its Digital Voting Series A-1 Preferred Stock for every 10 Common Shares investors hold. These Digital shares already exist and trade on the PRO Securities alternative trading system which is owned by tZERO Group which was one of the first Companies to issue its own Security Token last year (I am a holder of some). This is exciting as it starts to expand the use of blockchain into areas of the financial markets that clearly need the efficiencies available from the technology.

“Five years ago, we set out to create a parallel universe: a legal, blockchain-based capital market. We’ve succeeded,” said Overstock.comfounder and CEO Patrick M. Byrne. “The approximately 40,000 holders of the currently outstanding ≈37 million shares of Overstock will be issued a dividend of ≈3.7 million of these new digital shares to trade in that new capital market. Because the bundle of legal rights represented by each of these new A-1 shares is similar to the bundle of legal rights embodied in shares of our common stock (OSTK) that trades on NASDAQ, I might normally expect these blockchain-based A-1 shares to trade in rough approximation with OSTK. However, our legacy OSTK shares trade in a capital market with trading and settlement mechanisms about which I have long made my criticisms and doubts known to the public, whereas our new blockchain-based A-1 shares trade in a blockchain-based capital market which I believe is resistant to such dynamics. I cannot predict what kind of trading parity, if any, will emerge between the two. Perhaps arbitrageurs will notice and explore such matters, and in the process, punch a wormhole between the universe of legacy NMS and new universe of a blockchain capital market. I am going to be as interested as anyone else to see what the result of that will be.”

I think it is a great strategic move as it allows a broad base of investors, both retail and institutional, to start seeing the benefits and transparency that blockchain technology could bring to a market of asset trading. This allows the opportunity for adoption to grow not only for the community behind the tZERO platform and technology but also the general blockchain community. It will be interesting to see how investors adopt to its differences which seem seamless in my opinion with the added layer of quicker and cheaper transactions. Hopefully, it leads to some improvement to the price of tZERO Security Tokens as I am holder of some!

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