Ex-Overstock boss sells all of his shares

Former Overstock CEO Patrick Byrne has sold his 13% stake in the US online retailer for $90 million.

According to a filing with the United States Securities and Exchange Commission (SEC), he sold his shares at lower and lower prices over the past three days, ranging from $21.84 on 16th September to $16.32 on 18th September.

Following the filing, Byrne published a public letter to his former Overstock colleagues in which he announced his intention to stop trading anything else except the three assets that are “counter-cyclical to the economy,” including gold, silver and “two flavours of crypto.”

“I have been following the US economy and the deteriorating world situation, and I am growing worried, as I am sure you have as well…The good news is that a collapse of Wall Street would crush your main competitor, Wayfair: so far their business model has been predicated on losing ≈ $3 billion without a remotely break-even quarter, while replenishing continually thanks to their Wall Street promoters (e.g., Goldman), but in a recession that game will end,” he wrote.

“An economic downturn would hurt Overstock as well, but your firm has repeatedly shown the ability to roll with whatever punches get thrown, while Wayfair’s expense structure is so lopsided (with expenses that run 2X their “nectar$”), they will not be able to adjust such an event.”

In August, Byrne resigned as Overstock CEO. This closely followed the announcement of disappointing Q2 2019 financial results. In a letter, he said it was impossible to continue due to distraction and fallout related to his involvement in a Federal Bureau of Investigation Russian espionage probe. Further details here.