Overstock.com, Inc. OSTK's latest earnings report showed that the company's cryptocurrency investments declined significantly during the first quarter of 2015. The losses added up to $117,000, a hefty sum and disappointing performance for investors.
Bitcoin Supporter
Overstock has been a major proponent for digital currencies; last year the company's CEO Patrick Byrne said that the firm had brought in $1.6 million in bitcoin sales. The online retailer was also one of the first major merchants to begin accepting bitcoin payments back in 2014 when markets were still very apprehensive about the currency.
What Happened?
Many believe the losses are due to the fact that the company is still holding some of its assets in bitcoin, and that the coin's volatile nature brought down the firm's value. However, if this is the case, the company may see a major increase in future reports.
Related Link: Have You Met The Bitcoin Booty Girls?
Altcoin Investments
Overstock says its losses stemmed from investment in altcoins, which performed poorly. Those investments have all been lumped together with the company's bitcoin holdings and are said to be much of the reason for the decline.
Still A Supporter
However, the language in Overstock's quarterly filing suggests that the company has not been deterred from supporting digital currencies just yet. While the company recognized the legal and financial risk of dealing in cryptocurrency, the statement said that in the future, the company "may transact in cryptocurrency directly."
The filing also confirmed that the company wasn't opposed to increasing its digital currency holdings despite the current uncertain landscape.
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