Overstock.com (OSTK) issued a press release on July 30, announcing it’s going to start paying investors a digital security dividend. The first dividend will be paid on November 15 to investors who own shares of OSTK before September 23, 2019. This is a brilliant move that will drive up to 40,000 people to its digital securities platform.

The typical Wall Street route to raise capital is complicated and expensive… preventing most entrepreneurs from pursuing it. But digital securities are disrupting the financial model for businesses and individual investors as we speak. 

Because of blockchain technology, companies of all sizes can now issue digital securities and raise money—just like the biggest companies on Wall Street. It’s efficient, law abiding, faster, and less expensive… 

And now it’s changing the way investors receive dividends. 

The OSTK dividend will be paid at a ratio of 1:10. This means for every 10 shares, investors will receive one share of digital voting series A-1 preferred stock.

These series A-1 preferred shares currently trade on an alternative trading system (ATS) operated by PRO Securities. This platform is owned by Overstock’s subsidiary tZERO group. 

Overstock’s goal is to revolutionize the current trading system by increasing efficiency and settlement time for trades. This means driving customers to a blockchain-based capital market through this new ATS.

There are about 40,000 OSTK shareholders who own about 37 million shares. When the November 15  dividend is paid… those 40,000 shareholders will be directed to the new platform to trade their shares.

Over time, OSTK aims to open up this new platform to a whole variety of securities—including private companies, real estate, debt instruments, commodities, and more.

Blockchain technology is disrupting financial markets right in front of our eyes. Not only will it be lucrative for trailblazing companies like Overstock.com (OSTK)… but as new assets become available… it’ll also provide enormous opportunity for individual investors. 

Daniel Creech
Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Token Tracker, Curzio Research Advisory, and The Dollar Stock Club.

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