What happened Shares of online retailer Overstock.com (NASDAQ: OSTK) rose dramatically at the open of trading on Jan. 26. In the first half hour or so the stock gained roughly 28%, a huge move for any company. Although this type of volatility has actually been common in recent days thanks to so-called short squeezes, there was company-specific news that likely precipitated Ovestock.com's dramatic move. So what After the closing bell on Jan. 25, Overstock.com announced that it had agreed to partner with Pelion Venture Partners in the blockchain space. Although the retailer's main business is selling things via its namesake online store, it has long had a division called Medici Partners that invests in smaller ventures, notably in the blockchain space. With blockchain-based investments gaining increasing attention on Wall Street, this relatively small division has taken on increased importance among investors. That said, it would be easy to argue that the business was a distraction from the company's core retail operations. Taking on a partner makes good sense. Image source: Getty Images. Under the agreement, Medici will be converted into a limited partnership that Pelion will oversee. Overstock.com will be a limited partner in the entity, which is expected to have an eight-year life. Pelion will get paid an annual fee of $2.5 million plus incentive bonuses based on performance. It is expected to take three to six months before this arrangement is fully approved and put in place. This move will, presumably, help to unlock additional value for Overstock.com shareholders, while allowing the company to focus more of its attention on its core retail business. Now what Although blockchain is a hot technology right now, long-term investors should tread with caution here. Overstock.com shares are up more than 900% over the past year. And the price move on the current news seems to price in even more positives. It's entirely possible that this tree grows to the sky, but it's probably prudent to remember that what goes up often comes down equally hard on Wall Street. 10 stocks we like better than Overstock.comWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Overstock.com wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Overstock.com. The Motley Fool has a disclosure policy.Source