Patrick Byrne’s Spectacular Exit
In a bid to shift gears from the retail sector to the wild world of gold and cryptocurrency, former Overstock CEO Patrick Byrne sold his impressive 13% stake in the company for a whopping $90 million! Imagine getting that kind of cash just as you leave a job—talk about an exit strategy!
The Decreasing Share Price Dilemma
Byrne officially cashed out nearly 4.8 million shares of Overstock (OSTK), with the sale taking place over just three days. According to a filing with the United States Securities and Exchange Commission (SEC), he sold those shares at decreasing prices, starting from $21.84 on September 16 down to $16.32 by September 18. Talk about a bargain hunt—except this time, it was his own shares!
A Personal Message Off the Digital Trading Floor
After his big cash-out, Byrne didn’t shy away from the spotlight. He penned a public letter titled “A Message to My Former Colleagues at Overstock,” outlining his shift in focus. He plans to only trade in assets he views as “counter-cyclical to the economy”—namely, gold, silver, and, yes, two types of cryptocurrency. Seems like he’ll be trading more with friends in Switzerland and less with those pesky SEC regulators!
Overstock’s Stock Takes a Hit
Byrne’s departure might have sent ripples through the Overstock pool, as the company’s shares plummeted dramatically. After hitting a 52-week high in anticipation of a special dividend, the tide turned after Byrne’s sell-off, leading OSTK shares to drop 21% on September 16 alone, followed by additional declines of 11% and 8%. As of now, OSTK is floating lower at about $15.60. Someone get that stock a life preserver!
Rumors and Regulatory Shadows
The interim CEO of Overstock has publicly stated that Byrne’s exit has no ties to the ongoing regulatory investigation by the SEC, which has been lingering since 2017 like that unwanted party guest. Yet, it’s hard to ignore the timing—a major investor in Overstock’s blockchain arm, tZERO, dropped out just days after Byrne’s announcement. Seems like Byrne’s golden parachute may have sent some alarm bells ringing in the boardroom!
