Edit: From what I understand they basically want to launch a proprietary crypto-currency as a mean to raise money. I don't think they even specify whether this is supposed to be debt or equity.
I interpret this filing as Overstock initiating a dialogue with the SEC about whether the SEC will authorise the issuance of securities that will be traded on an alternative trading system[1] (as opposed to a traditional stock exchange like NASDAQ) and whose ownership will be recorded on a blockchain[2] (as opposed to a traditional, centralised clearing and settlement process, such as the Depository Trust Company).
The reason they haven't specified whether it will be debt or equity is because they have opted to list all the possible types of securities (six in total), presumably to see what the SEC's reaction is.
Basically, they're asking for permission to do everything, to see what the SEC's response is. If the SEC approves the application, happy days! However, it's far more likely that there will be a lot of back-and-forth before the SEC makes a decision.
To my knowledge, this is the first time anyone has formally filed to get SEC approval for crypto-issuance of securities. IANAL but I would expect that the SEC's response will set a de facto precedent (but not a de jure one). In other words (and at the risk of adding a bit of hype), this could be a small but significant step towards reshaping our financial system and reducing the power of Wall Street.
2: Or, as Overstock describes them, "digital securities, meaning the securities will be uncertificated securities, the ownership and transfer of which are recorded on a cryptographically-secured distributed ledger system using technology similar to (or the same as) the distributed ledger technology used for trading digital currencies".
Is there a reason the Overstock board hasn't reined Byrne in on his cryptocurrency push given that it's basically been an 18 month long failure that he keeps throwing money after?
"free thinking": business speak for "fucking nuts, but inexplicably keeps making money, just."
I believe there were recommendations that Overstock shunt all the lunacy over to a spinoff company run by Byrne and get someone not insane to run the actually profitable business.
Edit: From what I understand they basically want to launch a proprietary crypto-currency as a mean to raise money. I don't think they even specify whether this is supposed to be debt or equity.