Overstock.com CEO Patrick Byrne says Bitcoin holders have boosted his company’s bottom line as a reward for his decision earlier this year to become the first major retailer to accept the digital currency.
Reached by phone by Business Insider Tuesday, Byrne confirmed a report from Reuters’ Gertrude Chavez-Dreyfuss that Bitcoin sales had exceeded $US2 million since the Utah-based company began accepting the cryptocurrency in January. He added that he expected up to $US8 million in total sales for the year, and forecast Bitcoin revenues would be responsible for $US0.04 in earnings per share.
Byrne told Chavez-Dreyfuss he expects total 2014 earnings attributable to shares to reach $US0.75-$0.89. In 2013 the company had diluted full-year earnings attributable to common shares of $US3.64.
The average daily sales clip has now reached $US15,000 a day, or $US300,0000 per month, he said, though that rate was only recently achieved.
“What I get at conferences is, ‘I switched my purchases to you online as a show of support,’ ” he told BI. “That’s what I get in the Bitcoin community. It’s become part of the Bitcoin ethic to go and buy something on Overstock.com.”
“We’re associated with Bitcoin at this point,” he added.
Almost 90% of Overstock’s Bitcoin shoppers are male, but they’re often buying products like bedding or furniture more regularly purchased by women, Byrne said. The average size of a Bitcoin order is $US240 versus $US165 for regular items.
Overstock saw $US330 million in revenues in its quarter ended July 28, and that there is no plan to breakout Bitcoin volumes in quarterly filings — at 1/4 of 1%, the overall amount remains insignificant to topline data.
“There’s a ramp to it,” he said.
Besides Overstock, 2014 has also seen Dell, Dish Network, Newegg and Reddit announce they would accept Bitcoin payments.
Business Insider Emails & Alerts
Site highlights each day to your inbox.