Surprise! People have bitcoins and want to spend them, a fact that Overstock.com quickly discovered after they started accepting bitcoin payments.
“We did not expect to hit this milestone so quickly,” states Overstock.com Chairman and CEO Patrick M. Byrne. “Bitcoin customers are good customers, and we’re pleased to provide them this service.”
Overstock.com started accepting Bitcoin in early January by partnering with Coinbase to process the payments and handle the conversion of Bitcoin into U.S. dollars. Since then, Overstock.com reports 4,300 customers paid for over $1 million worth of goods with Bitcoin. The retailer estimates almost 60% of those are new customers to Overstock.com.
Bitcoin will likely remain a small part of Overstock.com’s sales. The retailer’s most recent financial statement indicates that it saw $397.6 million in revenue during its fourth quarter. Bitcoin transactions have a long way to go.
Overstock.com’s stock price jumped on this news and is currently trading 4% up on the day.
Up until Overstock.com started accepting Bitcoin, only small retailers and services were accepting the currency. It was originally an experiment for the retailer but today’s press release clearly shows that Overstock.com is happy with the results.
So who’s next? Newegg? Zappos? Maybe even Amazon?IMAGE BY Flickr USER Zach Copley UNDER CC by-SA 2.0 LICENSE