clock menu more-arrow no yes mobile Tops $1 Million in Sales Made in Bitcoin

The online retailer hit the milestone less than two months after it began accepting the digital currency.


Online retailer said Tuesday that purchases made with bitcoin have topped $1 million since the company introduced the payment option a little less than two months ago.

Overstock registered $1.3 billion in revenue in 2013, so the bitcoin sales total is currently a drop in the bucket. But crossing the $1 million threshold shows that there is at least some demand among a subset of shoppers to pay for goods using the digital currency. More than 4,000 customers have used bitcoin as a payment method, and more than half of the orders came from new Overstock customers.

Overstock is one of the only big-name merchants to accept bitcoin as a form of payment, making it likely that the e-tailer is reaping benefits from the novelty of its new payment feature. Still, CEO Patrick Byrne told The Wall Street Journal he expects sales made in bitcoin to total between $10 million and $15 million this year.

One benefit of accepting bitcoin is that bitcoin payment processors typically charge significantly less than traditional payment processors do for credit card purchases as a result of credit card company interchange fees. Overstock works with Andreessen Horowitz-backed Coinbase to process bitcoin transactions.

At the same time, it’s not clear whether adoption by other businesses — which is still small, but growing — will be hurt by the recent bankruptcy filing of one of the largest bitcoin exchanges, Mt. Gox. The price of bitcoin is up about 34 percent, to $671, since news of Mt. Gox’s demise started to spread last Monday night.

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