Today in the news, a company called Long Blockchain Corp. that made the news yesterday on January 5th for changing their name from Long Island Iced Tea to Long Blockchain Corp. is in the news for the second straight day as it is in the process of purchasing 1,000 units of Bitcoin mining equipment. This is interesting as this is a beverage company that changed its name and is moving into the cryptocurrency world of mining. Something interesting to note is that when they changed their name yesterday, their stock surged nearly 200%. This is insane and partially worrisome as this has the attributes of being a bubble mania. While I don’t believe the cryptos are in a bubble or even close, something as trivial as changing a company name to include blockchain should not raise the stock price 200%. They will purchase the mining machines for $4.2 million and used 260,000 common shares in the sale of the machines.
They are looking to create another stock offering at a purchase price of $5.25 to raise another $7.7 million. This is after the price of the stock which traded at $2.44 on December 20th rose and is now currently trading at $5.04. This is a very interesting story as we are starting to see regular companies with no ties to blockchain and cryptocurrency entering into the markets. I am not sure if this is for the right reasons or to get in on the blockchain mania but whatever it is it worked.