2.5$ to 120$ (48X) in 5 months

Stock: BYON

True story, friend. And one that confirms yet again: truth is stranger than fiction!

Used to trade as Overstock (OSTK).

Overstock is an online retailer primarily focused on home goods, including furniture, décor, bedding, and other household items. It operates an asset-light model that relies on drop-shipping, where suppliers fulfill orders directly to customers. It’s erstwhile Founder/CEO Patrick Byrne was also a big believer in Blockchain’s potential, and plonked the company’s cash in a number of early-stage blockchain companies under a vehicle called Medici Ventures. The company didn’t have much debt and generated significant cashflow. The stock went down with a number of other retailers at the time, even though it had very different business model (much lower overheads). Mainly because the market feared the CEO is too focussed on blockchain ventures and might end up destroying its core business. My Ape thesis was simple: this is a founder-run well-established e-commerce business that also has blockchain assets with outsized returns potential. Read that thrice, friend. Blockchain Assets, not Cryptocurrency Exposure.

I began accumulating OSTK back in April 2018, when it started sliding from 80+$. I initiated position at 43$. Went to 40$, 35$, 30$,…I bought more. Went to 25$, 20$,…I bought more. Went to 17$, 15$, 12$. I bought more, and I was done. I had put a good portion of my total capital into this, dollar averaged at 27$.

Then came the pandemic. On March 18th, 2020 - OSTK hit 2.53$. You can imagine (or maybe you can’t!) how that felt. I remember staring at my OSTK holdings 93% down! It was agony. Let that sink in for a moment.

In hindsight, I wish I had conviction to buy more. Why? When the market realised people can’t get out of their homes and will order everything online, and will invest in their homes (coz, well they can’t travel!), the stock went Nuts. The market didn’t even care about it’s blockchain holdings. It still doesn’t.

On 17th August 2020 (yes, just 5 months later), it crossed 120$. Of course, it (along with all other e-commerce stocks) crashed once the vaccines came out and market realised people will go out and still shop in physical outlets, haha.

I made decent dough, even though I didn’t ride the wave to the edge (you can’t time the market, friend). More than anything, it taught me the value of patience and conviction.

Great story, eh? But this isn’t supposed to just inspire you if you’re holding a bag. I’m not a management consultant. You read my posts coz you want to make your own luck.

If you’ve read so far, Congratulations. Now comes the ‘Bro, what’s in it for me?’ part.

This company now trades as Beyond, Inc (BYON). Overstock acquired the IP (for less than peanuts!) of erstwhile Bed Bath & Beyond family of brands and Zulily, making it now one of the largest home goods e-commerce retailers in USA. During the management transition, they screwed up on execution leading to significant revenue losses across the franchises. This is now being turned around. The company still has little debt and will likely turn cashflow positive by mid-2025.

Beyond owns the following franchises :

1. Overstock

2. Bed Bath & Beyond

3. Zulily

4. Buy Buy Baby

5. Medici Ventures

Beyond has first party data for consumers across these franchises, that it can monetise in many ways. It plans to continue operating an asset-light model, connecting consumers with goods and services that unlock their homes’ potential. It is run by a management that is obsessed with profitable, cashflow-positive business. And its executive chairman has bought a lot of the company stock himself since 2023.

Today, the market cap of BYON is 400M$. Each of the above assets once had a B$+ valuation. Medici Ventures’ portfolio companies have matured their business models, most promising being Tzero and Grainchain.

I had exited OSTK in 2021. But having seen all the above moves and how the chess pieces come together, I’m back in it. It’s an even better bet than it was back in 2020-2021.

BYON is the single largest holding in my portfolio today.

This story is certainly not over. And only time will tell how wild it gets. I maybe wrong. But what if I’m right, again?!

Choice is yours, fellow Ape. Choice is yours.