Overstock, the online technology retailer, is converting its blockchain investment wing into a cryptocurrency-focused investment fund, as it seeks to maximize profits amidst the crypto boom.
It has been reported that its wholly-owned blockchain-focused subsidiary, Medici Ventures, will become a limited partnership fund, pending legal and regulatory approval.
However, Medici Ventures, which previously oversaw and managed Overstock’s investments in blockchain-related companies, will cease providing its usual services, which also included software development and design services.
The report said that the fund is expected to run for eight years, with a capital commitment of $45 million. Third-party venture capital firm Pelion Ventures Partners will act as a general partner of the fund and will exercise sole authority and responsibility for investment decisions.
Overstock is spinning off its @medici_ventures to a new crypto investment fund. As Medici Ventures begins handling $45 million in blockchain investments over the next 8 years, will other companies follow their example as crypto grows in popularity? https://t.co/lXTajqZSKZ — Cointelegraph (@Cointelegraph) January 27, 2021
According to the fund’s limited partnership agreement, profits from the fund will be returned to Overstock first before being split. The fund will also own a “significant” minority stake in the Overstock-owned tZero Group.
Jonathan Johnson, the CEO of Overstock, said:
“Blockchain technology represents a leap forward in fundamentally changing the way we interact and transact with each other. We remain bullish on blockchain technology but are changing the way we interact with these assets.”
Thus, Blake Modersitzki, the Founder and General Partner of Pelion Ventures, said:
“We are honored Overstock selected us to maximize the value of its blockchain assets. Many of these companies have real potential. We believe our team knows how to help them reach that potential.”
Source: Cointelegraph