Overstock is investing aggressively in Bitcoin companies; now, it has announced that the US retail giant is investing in Blockchain technology specialist PeerNovahttp://peernova.com/ as part of its second tranche of Series – A financing. Talking to media professionals general manager of Overstock’s Cryptocurrencies Group Judd Bagley gave the information about the decision.
He said that PeerNova is precisely the kind of company Overstock is eager to back up. According to him their team is brilliant and agile and the products they have in the works are going to change the way business is done forever. He is of the view that PeerNova gets the transformative nature of the Blockchain.
Nonetheless, this is not the first investment that PeerNova has received from investors. Formed through a merger between cloud mining contract provider CloudHashing and ASIC hardware designer HighBitcoin in early 2014, it raised $8.6m in funding last December as it sought to accelerate its shift away from mining.
Elaborating further Judd Bagley went on to suggest that Overstock is currently seeking to expand its venture finance investments in Blockchain and decentralized ledger-based technology providers. He said that his company is completely bought into the idea that decentralized ledgers will play a significant role in business going forward.
He further added that the company believes the technology could disrupt entire business verticals. Nonetheless, citing Medici, he said that the decentralized stock exchange announced by Overstock in 2014, is an example of a project with such ambitious goals. He firmly believes that there is a huge opportunity to disrupt entire segments of the business ecosystem.
The Funds May be Used for Branding and Capacity Enhancement
Bagley believes that Bitcoin has huge prospects as it can replace the other payment options that have substantial frictional and transaction costs. Looking forward to cash in on the golden opportunity available in Bitcoin ecosystem Overstock invested $5m in the firm. The decision has been approved by its board of directors as well.
However, the decision to announce in its next quarterly report to stockholders has also been made by the directors. Reacting to the news story PeerNova indicated that the funding has increased its total to-date financing to $19m in equity and debt financing. Nonetheless, it also suggests that now focus would be on data security and finance.
Interestingly, though PeerNova has attracted new investments, sources claim that its older line of products continues to suffer from a poor reputation in the general market. Therefore, a lot of the new fund may also be used for branding purposes.
To contact the reporter of this story: Deepak Tiwari at email@example.com