Overstock will restructure its planned crypto dividend to end lockup period for preferred shares
September 18, 2019, 1:33PM EDT
1 min read
Overstock, the crypto-friendly online retail firm, is restructuring its cryptocurrency dividend planned by former CEO Patrick Byrne, who resigned his position last month following a tumultuous tenure.
According to a statement sent to The Block, Overstock notes, "In view of the feedback we received from industry participants, investors, and regulators with respect to the Series A-1 stock dividend, and in order to provide greater liquidity, we are working with the appropriate regulatory authorities to structure the issuance of the dividend shares so they would be freely tradable by non-affiliates immediately upon distribution."
Before stepping down as CEO of Overstock, Byrne and Overstock's board of directors approved the issuance of a blockchain-based digital security which would be listed on the firm's tZERO security token trading platform. As part of the approval, the digital security could only be accessed through a Dinosaur Financial Group brokerage account and had a lockup period for six months from the issuance date.
Overstock's announcement comes after a New York Post report that claiming Byrne planned the digital security to "thwart short sellers." According to the Post's source "Byrne figured out how to stick it to Wall Street" and “He designed the dividend to create short covering.”