Bitsy Mobile Bridges Bitcoin and US Dollar

November 23, 2018

Medici Ventures,’s blockchain accelerator, noted that portfolio company has allowed public access to the beta version of its exchange and wallet service. Bitsy’s new app-based platform creates a bridge between bitcoin and the US Dollar.

During Bitsy’s beta testing phase, users can download the Bitsy app from the App Store or Google Play free of charge to securely buy, transfer, or hold bitcoins. Bitsy gives users complete control of their funds and allows for the transfer of assets directly between individuals. The app also includes an innovative and secure account recovery system to assist users in the event they lose their funds.

“The great promise of the Bitcoin white paper was to have legitimate peer-to-peer exchange of value without the need for trusted intermediaries. Few people understand, however, that with conventional Bitcoin wallets, users do not have actual possession or control of the Bitcoins they buy: their wallet-provider owns the Bitcoin and provides a contractual claim to the consumer, who must then trust that corporation. This defeats the whole purpose of crypto. Bitsy wallets, on the other hand, allow users to possess and have complete control of their cryptocurrency without the risk of lost keys. This sets a new standard for digital wallets,” said Patrick M. Byrne, CEO and founder. “We are excited to continue our cryptocurrency journey and integrate Bitsy’s technology with to offer bitcoin for sale directly from the retail site in the first half of 2019.”

“Bitsy’s goal is to make bitcoin and other cryptocurrencies more approachable and easy to use,” said Ann-Marie Hopkins, CEO of “This beta launch is just the beginning and we plan to continually update the app with security and convenience features. The full app will be ready for launch in Q1 2019.”

Medici Ventures is a wholly owned subsidiary of, Inc. founded in 2014 to strategically invest in companies advancing blockchain technology to democratize capital, eliminate middlemen, and rehumanize commerce. also reported financial results for the quarter ended September 30, 2018.

Overstock founder and CEO Patrick Byrne noted:

  1. How we have put over $175 million of your capital to work nurturing to life a keiretsu of blockchain enterprises, including tZERO, which we believe is leading the pack globally in possibly the most lucrative of all blockchain applications (i.e., security tokens). I think the public may not understand our master plan in Medici, how the pieces all fit together, as well as how blockchain firms in this network are making similarly dramatic progress in their respective fields.
  2. As promised in our last conference call, we have pivoted our ecommerce business from the “accelerate at any cost and ignore the losses” standard Internet model back to our rational economic agent model, and in the process halved quarter-to-quarter loss (from $57 million to $29 million pre-tax operating loss before some special legal expenses). In the slide deck to which we will speak during our conference call, we will disclose data regarding the shifts in our marketing efficiency that have occurred and are accelerating. Because of these improvements, I expect similar results in our fourth quarter. 
  3. We are adequately capitalized (especially given the significant contraction in retail losses) in a way that does not strangle our ambitions in blockchain. In tZERO in particular, we know we have a massive opportunity and have staffed up appropriately, but in this conference call you will learn of other efforts we are staffing up on the expectation that they represent similarly sized opportunities.
  4. Strategic issues: In our last conference call, we announced we were working on a partnership with GSR capital and our ambitions to scale tZERO globally with GSR. We share a common strategic outlook, and GSR is proving to be a great help in the development of business in Asia. We also disclosed that GSR had signed an agreement to buy $30 million in tZERO security tokens from Overstock and would acquire stakes in tZERO and Overstock common stock, subject to due diligence and negotiating definitive agreements. GSR has completed its legal due diligence, and we are actively working with GSR to finalize definitive agreements. Beyond that, because it is the Catch-22 of strategic matters that we really cannot report much on them until we can announce them, Seth Moore will report (to the extent he legally can) on GSR and progress on finding the partner for our retail firm.

Key Q3 2018 metrics (comparison to Q3 2017):

  • Revenue: $440.6M vs. $424.0M (4% increase);
  • Gross profit: $86.7M vs. $83.7M (4% increase);
  • Gross margin: 19.7% vs. 19.7% (flat);
  • Sales and marketing expense: $55.3M vs. $45.2M (23% increase);
  • G&A/Technology expense: $79.2M vs. $50.4M (57% increase);
  • Pre-tax loss: ($49.4M) vs. ($6.5M) ($42.9M increase);
    • Pre-tax loss - Overstock retail (non-GAAP financial measure): ($40.0M)
    • Pre-tax loss - Medici (non-GAAP financial measure): ($9.4M)
  • Net loss*: ($47.9M) vs. ($0.8M) ($47.1M increase);
  • Diluted net loss per share: ($1.55)/share vs. ($0.03)/share ($1.52/share increase);

*Net loss refers to Net loss attributable to stockholders of, Inc.

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