Blockchain-focused firm Medici Ventures has reported a loss of $3.3 mln before taxes during the second quarter (Q2) of 2017. The company is a subsidiary of online retailer Overstock.com.
Based on its filing with the US Securities and Exchange Commission (SEC), Overstock.com claimed that the loss was related to the move to expand the scope and functionality of its newly launched Blockchain-based securities market, T Zero. The parent firm further stated that it expects its subsidiary to continue losing money in the short term.
According to Overstock.com chief executive officer (CEO) Patrick Byrne, they are confident that the investments made by Medici Ventures will show positive results in the long term despite the losses.
“I remain confident that we are doing the right thing for our shareholders by having Medici pursue a position of global leadership in Blockchain technology.”
Meanwhile, Overstock.com registered a pre-tax loss of $8 mln in the first quarter of the year, up from the $3 mln loss it posted in the fourth quarter of 2016. The loss included a $4.5 mln impairment charge in relation to its investment in Blockchain startup company PeerNova.
Other Medici Ventures projects
Medici Ventures has continued its investment portfolio expansion program in the remittance use case.
The company has already invested in such startup companies as PeerNova, Bitt, SettleMint, IdentityMind and Factom.
In April 2017, Medici Ventures participated in the Series A financing round that was launched by Bitcoin startup Ripio, formerly called Bitpagos, with an investment of $428,000.
According to Medici Ventures president Jonathan Johnson, the Ripio investment reflects the company’s increased involvement in the potentially valuable remittance use case.
He also said that the company will take an “observer” seat on Ripio’s board as part of its investment.