The iced tea firm that modified its identify to incorporate ‘blockchain’ retracts on bitcoin mining operation • TechCrunch

Bear in mind the iced tea firm that changed its name to Lengthy Blockchain and instantly shot up by 500 % on the inventory market? Effectively, it seems it is probably not stepping into the blockchain in any case.

The corporate has determined to again off from its pledge to purchase 1,000 bitcoin mining machines — simply six weeks after it mentioned it will be doing so.

After all, six weeks in the past bitcoin was value an entire lot greater than it’s now — it’s presently buying and selling at $10,000 lower than it was initially 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 stoop has affected Lengthy Blockchain’s shares, which have plunged 50 % because it reached its dizzying peak, inflicting the corporate’s market cap to sink under the $35 million minimal worth required to checklist on Nasdaq’s change.

“Whereas we proceed to consider within the worth of mining gear to the blockchain ecosystem, the acquisition of those machines — which was negotiated as a no-risk choice to the Firm — was simply one of many a number of strategic avenues we now have been contemplating,” Shamyl Malik, head of the Firm’s Blockchain Technique Committee, mentioned in a statement.

As an alternative, Lengthy Blockchain says it’s going to “proceed to judge the acquisition of mining gear for Bitcoin and different digital currencies as a part of our bigger blockchain initiative” because it strikes forward on finishing a merger with British agency Stater Blockchain, which works on “creating and deploying globally scalable blockchain know-how options within the monetary market,” based on its website.

Observe, nevertheless, Lengthy 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 acquired a warning letter from Nasdaq in October, prompting the zany technique to alter its identify to a zeitgeisty buzzword.

Because it seems, glomming on to the pattern of the second to spice up your worth can solely maintain you for thus lengthy. There’s no phrase on when the merger will likely be full, however one factor is obvious — Lengthy Blockchain just isn’t prone to see the kind of good points it as soon as did just by altering its identify.

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