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Morgan Stanley & Blackrock Count Among the Top 5 Investors in This Bitcoin-Friendly Stock; Up 265% in 6M

Investment managers are increasingly turning towards Bitcoin

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Overstock up 30% as Morgan Stanley buys in

Morgan Stanley (MS) is the latest entrant to take a position on Overstock.com, Inc. (OSTK). The company’s December 8th SC-13G filing with the Securities and Exchange Commission disclosed the company’s 11.5% stake in OSTK, making it the largest institutional investor in the company. Accordingly, Soros Fund Management LLC, Dimensional Fund Advisors LP, DLD Asset Management LP, and BlackRock Inc. (BLK) now follow Morgan Stanley’s lead as the top institutional investors in the company.

Up 265% in 6 months; 30% Since Dec. 8

Overstock’s stock is up 265% over the last 6 months (as of December 12th), and 30% since the Morgan Stanley announcement. The American Internet retailer debuted on the Nasdaq Market in the US under the ticker OSTK in May 2002, at a price of $13 a share. The shares of OSTK now trade at over $50 a share. The Morgan Stanley news alone bumped the price up from $45 (on Dec 08) to $54 (Dec 12 close). So, what’s behind the surge?

What’s Behind the surge?

Since 2014, Overstock has been openly embracing Bitcoin and blockchain technology applications. The company partnered with Coinbase to become the first major retailer to accept the digital currency, hence leading to its popularity amongst fintech fans. Customers can shop on the e-commerce platform using Bitcoins, but the company itself is known to be holding back its own Bitcoins for now. Accordingly, we may see them investing in cryptocurrency-related projects. The company is also set to launch an Initial Coin Offering, tZERO, on December 18th as a distributed ledger platform for capital markets.

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