- Long Island Iced Tea quadrupled its stock price — and avoided being kicked off Nasdaq’s stock exchange — in a single day by changing its name to Long Blockchain.
- Without any actual cryptocurrency assets, the company is now back below a $35 million market cap, meaning it could get another warning.
- The company is currently attempting to merge with a British brokerage.
The Long Island Iced Tea Company needed a boost and it needed one quick.
In October, the company was warned by Nasdaq that unless it could maintain its market value above $35 million for at least 10 consecutive business days in the next six months, the company could be de-listed by the exchange.
Its savior would come in the form of cryptocurrency. Unfortunately for the company, however, it appears the relief may be short lived.
In December, after Long Island Brand Beverages announced its new name, Long Blockchain, and new strategic focus on the technology underpinning cryptocurrencies like bitcoin, its stock more than quadrupled from $2.15 to $9.49. The company’s market cap was now well above the $35 million mark, at $67 million, and receiving mountains of mainstream press coverage it otherwise could only have dreamed of.
But on Wall Street, onlookers weren’t convinced a small beverage bottler from New York City’s suburbs could just simply pivot to blockchain. “I read the Long Island Iced Tea prospectus and then almost fell out of my chair when you reported they were becoming a Blockchain company,” one industry insider told Business Insider.
Long Blockchain’s quest into cryptocurrency continued through the new year. In January, the company said it would sell $8.4 million worth of shares to finance the purchase of 1,000 S9 Antminer bitcoin mining machines, before balking on that plan less than a week later.
Now, less than Read More Here