The iced tea company that changed its name to include ‘blockchain’ retracts on bitcoin mining operation

Remember the iced tea firm that changed its name to Long Blockchain and instantly shot up by 500 p.c on the inventory market? Well, it seems it might not be entering into the blockchain in spite of everything.

The firm has determined to backoff from its pledge to purchase 1,000 bitcoin mining machines — simply six weeks after it stated it will be doing so.

Of course, six weeks in the past bitcoin was value a complete lot greater than it’s now — it’s at present buying and selling at $10,000 lower than it was in the beginning of the 12 months. That’s to not say it received’t go up once more however buyers are rightfully skittish at this level.

That droop has affected Long Blockchain’s shares, which have plunged 50 p.c because it reached its dizzying peak, inflicting the corporate’s market cap to sink beneath the $35 million minimal worth required to checklist on Nasdaq’s alternate.

“While we continue to believe in the value of mining equipment to the blockchain ecosystem, the purchase of these machines – which was negotiated as a no-risk option to the Company – was just one of the multiple strategic avenues we have been considering,” Shamyl Malik, head of the Company’s Blockchain Strategy Committee, stated in a statement.

Instead, Long Blockchain says it’ll “continue to evaluate the purchase of mining equipment for Bitcoin and other digital currencies as part of our larger blockchain initiative” because it strikes forward on finishing a merger with British agency Stater Blockchain, which works on “developing and deploying globally scalable blockchain technology solutions in the financial market,” in keeping with its website.

Note, nonetheless, Long Blockchain was already in a pickle earlier than including blockchain to the identify. Shares dipped by 24 percent over the last 12 months and the corporate obtained a warning letter from Nasdaq in October, prompting the zany technique to alter its identify to a zeitgeisty buzzword.

As it seems, glomming on to the development of the second to spice up your worth can solely maintain you for therefore lengthy. There’s no phrase on when the merger will probably be full however one factor is evident — Long Blockchain will not be prone to see the kind of features it as soon as did just by altering its identify.

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