During the first quarter of 2015, the giant retailer’s “losses on cryptocurrency investment” were $117,000, suggests the quarterly earnings report. However, it does not dissuade Overstock from dealing with bitcoin.
The report, filed to the U.S. Securities and Exchange Commission, specifies that the company’s cryptocurrency assets went from $340,000 on 31 December to $233,000 on 31 March.
However, according to the company’s representative, bitcoin volatility was not the main reason behind these changes. Overstock worked with a number of different cryptocurrencies and they were all considered together for the purposes of the report. The loss was mainly caused by altcoins, said the company. Bitcoin assets have also diminished because Overstock made a number of bitcoin payments: for instance, it paid its membership in the Chamber of Digital Commerce.
It may also mean that Overstock abandoned its principle of holding 10% of earnings from cryptocurrency sales in bitcoins.
Nevertheless, the report states that Overstock will continue to work with cryptocurrencies, despite all the risks connected with bitcoin volatility and possible regulation hurdles.
Overstock became one of the first major companies to accept bitcoins. When bitcoiners shop on the site, they buy mostly pillows, area rugs, charity donations, and headphones.
As CoinFox wrote earlier, in 2014 Overstock lоst $8000 on cryptocurrency holdings. But losing money did not lead to losing interest: in March, Overstock invested $5 million in PeerNova cryptocurrency platform. Patrick Byrne, the company’s CEO, also announced that Overstock planned to issue issue a private bond using the distributed public ledger. In May, Byrne became tеch councillor of the Republican senator Rand Paul, the first U.S. presidential candidate to accept donations in bitcoin.