Despite explosive 3rd-quarter growth within the security token sector, Overstock’ Q3 this year’s income reveals that its tZERO alternative trading system [ATS] has continued to lose money.
The ATS focuses on security tokens, consistently hosting over 95% of the sector’s monthly trade volumes. tZERO saw dramatic growth in recent months, with monthly volume growing from less than $1 Mln earlier in May to push $21.8 worth of trade in August – prior sliding back to $9 Mln later in September.
Although tZERO’s net revenue hiked 97% year-over-year to $11.1 Mln, Overstock’s latest income report shows tZERO lost $12.4 Mln before taxes for the 3rd quarter overall.
While looking at its performance over 9-Months ending on 30th Sep., tZERO posted a loss of $35.5 Mln despite net revenue of $34.1 Mln. Over a similar period earlier in 2019, tZERO summed $15.7 in revenue but lost $38.7 Mln.
Earlier in 2013, Overstock, then a successful online retail firm, became one of the primary major mainstream businesses to support Bitcoin. Despite announcing it might shift faraway from retail to specialize in blockchain and cryptocurrency technology in 2018, retail is among the sole segment of Overstock’s business that’s presently profitable – driving $43 Mln in revenue last quarter.
Overstock conducted a $134 Mln ICO [Initial Coin Offering] for tZERO in mid-2018.
Overstock venture arm Medici Ventures Inc, which offers ongoing support to the event of tokenization protocol Ravencoin [RVN], netted only $2.8 Mln in Q3 to post a quarterly loss of nearly $6.6 Mln overall.
Earlier on 28th Oct., Medici Ventures revealed that it had made an $8 Mln equity purchase within the Caribbean-focussed blockchain technology provider Bitt. Medici previously purchased $4 Mln of Bitt equity in 2016, followed by a $3 Mln equity purchase in 2018.