Patrick Byrne of Overstock sells shares in his company to invest in blockchain
The chief executive officer of Overstock.com (OSTK), Patrick Byrne, has recently slammed investors who questioned his sale of 900,000 of his ‘founders shares’ in the company. He said he needed the funds to invest in blockchain projects.
According to Business Insider, Byrne recently sent a letter to shareholders after the company’s stock prices plunged over 21% this week to their lowest since 2012, after he revealed he sold 500,000 of his shares earlier this week.
On Friday, he revealed he sold an additional 400,000 shares. This means he sold over 15% of his stake in the company. Although Overstock’s shares recovered on Friday, May 17, Byrne’s letter to shareholders was notable.
He wrote:
“I simply had to supplement my nominal salary with stock sales in order to fulfill personal commitments to invest personally in blockchain projects such as Medici Land Governance, along with a need to meet charitable pledges.”
The CEO added that he doesn’t plan on giving such an explanation again, justifying that he owes shareholders “staying within the law and not making decisions based on inside information, not explanations of my life and projects outside Overstock.”
He noted that the “stir” caused by his sale was unexpected. He said: “I had no idea that shareholders would demand explanations of why and how I might want to use my cash derived from my labor and my property to pursue my ends in life.”