Home Investing & Trading Overstock Blazes Forward with Digital Share Dividend

Overstock Blazes Forward with Digital Share Dividend

by Alan Daniel
, Overstock Blazes Forward with Digital Share Dividend
Overstock, the online retailer, has released a slew of different announcements over the past couple of months. The latest by the company is yet another noteworthy and interesting announcement. The firm has taken quite a few steps to push forward into this new digital frontier with its continued focus on Medici Ventures and growth.

tZero, one of the companies under Medici Ventures has recently released a cryptocurrency exchange, it then released an Android application for the cryptocurrency exchange.

tZero is involved in a variety of industries including securitizing film production.

Now, Overstock seeks to become even more digital.

How? 
By providing shareholders of Overstock with with digital dividends.

Overstock and Digital Dividends

If you have the stomach to be a shareholder in Overstock, a company that continues to have regular volatility, then you might find comfort in knowing that Overstock will release a digital dividend. The company released a statement, announcing that its Board of Directors declared dividends “payable in shares of its Digital Voting Series A-1 Preferred Stock (the ”Series A-1“).

Interested in investing in Overstock and receiving some of these preferred shares?

There’s a catch.

You’ll have to own ten common stock shares of Overstock by the dividend record date of September 23, 2019. These dividends will be distributed by November 15, 2019, according to the announcement.

Where Would One Trade These Digital Dividends?

Hold the series A-1 digital shares on the PRO Securities alternative trading system (ATS), mostly owned and operated by tZERO Group, Inc.


Will These Digital Dividends Have Liquidity?

Investors will have to hold these shares for a period of six months. After, there should be sufficient liquidity on the PRO Securities alternative trading system (ATS).

Liquidity will depend on the amount of buyers, holders, and sellers on the PRO Securities alternative trading system (ATS).


Legalities of the series A-1 Digital Shares

Investors will have the same “bundle of legal rights” that are present within the current common stock of the company.


Further tZero Adoption?

In addition, Saum Noursalehi has stated in the past that tZero tokens should be available for trading to non accredited investors. This means that there might be more interest on this platform over the course of this year.

CEO Patrick M. Byrne stated, “Five years ago, we set out to create a parallel universe: a legal, blockchain-based capital market. We’ve succeeded.” He went on to state: “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.” 

We know that one thing is for certain. This will expose more investors to the alternative trading system powered by the blockchain.

Will this bring about more adoption and create a domino effect for use cases more security token deployment? That is the idea.

I’m interested in seeing the value of these digital shares and how they fluctuate on this new marketplace.

You Will HODL The Series A-1 Digital Shares

One more important note is that these Series A-1 digital shares do not have to fall under the Securities Act of 1933. As such, it is my understanding that investors will have to hold these shares under Rule 144 of the Securities Act and will not be able to trade them over a period of six months.

For further questions, reach out to the Overstock customer service department.



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