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Overstock Online Retailer (OSTK) shares have jumped 30% this year week after the revelation of CEO Patrick Byrne key details on the initial offer of coins (OIC) for one of Overstock's portfolio companies – an ICO that he believes can report up to To $ 500 million.
As reported by CCN, the subsidiary of Overstock tZERO formed a joint venture with two other companies to establish the first regulated US trading platform for ICO tokens. Since Overstock is licensed to operate a parallel trading system, the stock market will be able to list tokens that are subject to federal securities regulation.
Byrne later revealed that tZERO would own an ICO to fund the development of the platform, and he announced key details about ICO at this week's Money 20/20 conference in Las Vegas. More importantly, he stated that the tZERO token will work as a security, which means that it will entitle investors to a percentage of the company's profits. It boasted that the ICO would raise up to $ 500 million, a brand that would break the current $ 257 million crowdsale record currently held by Filecoin.
The announcement sent the price of Overstock shares through the roof. Since October 20, OSTK shares have jumped from about $ 35 to $ 46 for an increase of more than 30% over seven days. Last year, Overstock shares nearly tripled in value, and analysts attribute this rally primarily to the company's involvement in the blockchain space through Medici Ventures, its wholly owned subsidiary. blockchain investment.
Despite this spectacular increase, Overstock can still offer investors significant upside potential. Bloomberg reports that stock analyst Tome Forte has risen to $ 57 its mid-term Overstock stock price target following the ICO announcement. "We are encouraged by the announcement and the direction that tZERO is taking its business," Forte would have written in a note to customers this week.
Stock Price OSTK Source: Bloomberg
Overstock is not the only company to profit from its commitment – or perceived commitment – with the blockchain. MGT Capital's shares climbed after it restructured and began investing in a cryptocurrency operation, and a biotech company doubled its price after being renamed "Riot Blockchain" and announced that it would start investing in crypto startups.
Source: Bloomberg
However, the hype around blockchain technology began to concern regulators. The US Securities and Exchange Commission (SEC) has warned investors that companies – especially those whose shares are traded over the counter – may associate with blockchain technology to artificially inflate the price of their shares. . As a result, the SEC has issued several temporary trading suspensions to OTC block companies in recent months.
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