Shares Of Retailer-turned-cryptocurrency Play Overstock.com Crater On Share Providing

Shares of Overstock.com fell greater than 10 p.c Tuesday after the corporate introduced its intention to supply 4 million shares of latest inventory.

The e-commerce firm stated after the markets closed Monday it might subject the brand new widespread inventory in an underwritten public providing. Guggenheim is the only real underwriter, and has the choice to purchase as much as 600,000 extra shares within the providing inside 30 days, Overstock.com stated.

Overstock.com was buying and selling at $39.75 on Tuesday morning, bringing the entire inventory providing to about $158.8 million. Shares are down by greater than 37 p.c this 12 months.

The Salt Lake Metropolis-based on-line retailer is finest recognized for promoting merchandise like furnishings, residence decor and jewellery. However the firm has additionally moved into the blockchain and cryptocurrency house.

Overstock.com’s subsidiary tZero stated in late September it might type a three way partnership to start out a digital coin alternate. The corporate has additionally stated it has a license for another buying and selling system by one other acquisition.

The Securities and Alternate Fee is investigating the agency for its cryptocurrency-focused subsidiary’s sale of digital tokens.

Overstock stated that in February the SEC requested “sure paperwork associated to the providing and the tokens in reference to its investigation,” in line with an 8-Ok submitting with the fee.

The SEC has elevated its scrutiny of gross sales of latest digital tokens, or preliminary coin choices, which have introduced in $7 billion since 2016, in line with knowledge from monetary analysis agency Autonomous Subsequent.

Earlier in March, shares of Overstock.com dropped greater than 15 p.c after the corporate reported a gross sales decline and no important progress on a possible sale of its retail arm to give attention to its cryptocurrency-related enterprise.

 
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