Excess stocks become a limited partner in the blockchain fund
Investor visit scheduled for January 26, 2021 at 8:30 a.m. ET

SALT LAKE CITY, Jan. 25, 2021 (GLOBE NEWSWIRE) – Overstock.com, Inc. (NASDAQ: OSTK) today announced that Medici Ventures, Inc., its wholly-owned blockchain-focused subsidiary, is being converted into a Limited Partnership ( the “Fund”). A company owned by Pelion Venture Partners, a third party venture capital company that has a proven record of investing successfully in early stage companies, will serve as general partner of the Fund.

“Blockchain technology is a leap forward to fundamentally change the way we interact with each other and do business. Since 2014, we’ve invested in companies and advocated for companies that are advancing blockchain technology, ”said Jonathan Johnson, Overstock’s chief executive officer. “We remain optimistic about blockchain technology, but are changing the way we interact with these assets. In evaluating how to achieve the highest return for our shareholders, we determined the time to work with an experienced venture capital firm to monitor the portfolio and make subsequent investment decisions. Pelion is the perfect company to do this. The company has blockchain and technology expertise in early stage companies and has driven many companies to commercial success. “

“We are honored that Overstock has selected us to maximize the value of its blockchain assets,” said Blake Modersitzki, Founder and General Partner of Pelion Ventures. “Many of these companies have real potential. We believe our team knows how to help them realize this potential. “

Medici Ventures will be converted into a limited partnership under the agreement, which will be concluded upon receipt of the necessary legal and regulatory approvals. Excess stocks become limited partners of the fund. Upon closing, Pelion will have sole authority and responsibility over investment decisions, the appointment of directors of the portfolio companies, and the exercise of all shareholder rights in assets Medici Ventures currently holds. The fund has a term of eight years and a total capital commitment of $ 45 million. The fund first returns the invested capital to Overstock and then divides the profits on successful exits, as stipulated in the limited partnership agreement of the fund. The Fund will have a significant minority interest in tZERO Group, Inc. (“tZERO”) and Overstock will retain a direct minority interest in tZERO.

“We were looking for the right solution to maximize the value of these assets and we are pleased to have found a competent and knowledgeable partner in Pelion,” continued Johnson. “We believe this structure will provide the best opportunity for Medici Ventures companies to make significant exits and allow Overstock executives to focus on their core e-commerce business, which is seeing huge revenue in 2020 -, profit and market share growth. “

Medici Ventures will cease providing software development and design services to its portfolio companies. As a constant proponent of blockchain technology, Overstock will continue to accept Bitcoin as payment for products purchased on its website.

Investor call
The company has scheduled a conference call and webcast at 8:30 a.m. ET on Tuesday, January 26, 2021 to discuss this announcement and answer questions from attendees. Questions can also be sent in advance to ir@overstock.com.

Webcast information
Visit http://investors.overstock.com to access the live webcast and presentation slides. To listen to the conference call, dial (877) 673-5346 and enter the conference ID 2918945 when prompted. Participants outside the United States or Canada who do not have Internet access should dial +1 (724) 498-4326 and enter the conference ID listed above when prompted.

A replay of the conference call will be available at http://investors.overstock.com two hours after the live call ended. An audio replay of the webcast will be available by phone starting Tuesday, January 26, 2021, 11:30 a.m. (CET) and Tuesday, February 9, 2021, 11:30 a.m. (ET). To listen to the recorded webcast by phone, dial (855)) 859-2056 and enter the conference ID listed above. Outside the US or Canada, dial +1 (404) 537-3406 and enter the conference ID listed above.

About overstock
Overstock.com, Inc Common Stock (NASDAQ: OSTK) / Series A-1 Preferred Stock (tZERO ATS: OSTKO) / Series B Preferred Stock (OTCQX: OSTBP) is an online retailer and technology company based in Salt Lake City, Utah. The leading e-commerce website sells a wide range of new household products at great prices, including furniture, decor, carpets, bedding, home improvement items, and more. The online shopping website, which is visited by tens of millions of customers every month, also has a marketplace where customers can access millions of third-party products. Overstock was the first major retailer to accept cryptocurrency in 2014, and in the same year founded Medici Ventures, a wholly-owned subsidiary dedicated to developing and accelerating blockchain technologies to democratize capital, eliminate middlemen, and re-humanize commerce dedicates. Overstock regularly publishes information about the company and other related topics on the Newsroom and Investor Relations pages of its Overstock.com website.

O, Overstock.com, O.com, Club O, and Worldstock are registered trademarks of Overstock.com, Inc. Other service marks, trademarks, and trade names referenced herein are the properties of their respective owners.

About Medici Ventures
Medici Ventures was founded in 2014 and is a wholly owned subsidiary of Overstock.com, Inc. founded to use blockchain technology to solve real-world problems with transparent, efficient and secure solutions. Medici Ventures was interested in a global keiretsu pioneering blockchain company focused on laying the foundation for a technology stack for civilization. Medici Ventures’ companies are adopting blockchain technology in industries such as identity, land governance, money and banking, capital markets, supply chain and voting. The majority-owned financial technology company tZERO carried out the world’s first blockchain-based share offering in December 2016.

Via Pelion Ventures partners
Pelion is an early stage technology venture capital company with a national track record of investing in software-based companies that drive the exponential growth in the movement of information, or “bits,” over wired and wireless networks. Pelion was founded in 1986 and has partnered with leading technology innovators CloudFlare, Fusion-io, MX Logic, RedHat and Riverbed. More at www.pelionvp.com.

Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include all statements other than statements of historical fact, including, but not limited to, statements of the closing date Agreement with Pelion and expectations regarding the performance of Pelion and the Fund. No assurance can be given that regulatory approval will be granted and that the agreements with Pelion will be concluded. For more information about factors that could materially affect results and the accuracy of the forward-looking statements contained herein, please refer to the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on December 13, 2019. On March 31, 2020, on our Form 10-Q for the quarter ended March 31, 2020, filed with the SEC on May 7, 2020, on our Form 10-Q for the quarter ended June 30, 2020, filed with of the SEC on August 6, 2020 on our Form 10-Q for the quarter ended September 30, 2020, which was filed with the SEC on November 5, 2020, and in our subsequent filings with the SEC.