Blockchain News

Long Blockchain cancels plan to buy bitcoin mining equipment


Shares of Long Blockchain Corp.












LBCC, +3.95%










rallied 8.2% in premarket trade Friday, after the company formerly knows as Long Island Iced Tea Corp. said it has decided not to buy Bitcoin mining rigs. Instead, the company said it will focus its efforts on “seeking to enter into and ultimately consummate” its previously announced proposed merger with Stater Blockchain Ltd. The company, which said in December said it was changing its focus on investing in blockchain technology, said in January that it cancelled plans for a public stock offering that the proceeds were going to be used to help purchase 1,000 Antminer S9 mining rigs and 1,000 APW3++ PSUs. “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,” said Shamyl Malik, head of the company’s blockchain strategy committee. The comapny’s announcement comes as bitcoin futures












XBTH8, -3.79%










extended their recent selloff toward a new low since inception. Long Blockchain’s stock has tumbled 24% over the past 12 months, while the S&P 500












SPX, -1.00%










has gained 24%.



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