Iced tea company kills plan to buy bitcoin mining rigs

Bitcoin prices have been in free-fall mode. And so have many bitcoin-related stocks, including a tiny beverage compan...

Posted: Feb 2, 2018 5:25 PM
Updated: Feb 2, 2018 5:25 PM

Bitcoin prices have been in free-fall mode. And so have many bitcoin-related stocks, including a tiny beverage company that just changed its name and business model in December.

Long Blockchain, which used to be known as Long Island Iced Tea before it went all-in on cryptocurrencies, soared nearly 200% the day that it announced its new business model. But shares have plunged nearly 55% since then.

And it appears that the company is having a tough time making the transition from a maker of bottles of non-alcoholic Long Island Iced Tea (uhh, what's the point?) to blockchain powerhouse.

Long Blockchain said Friday it was abandoning a previously announced plan to buy bitcoin mining equipment and would focus instead on a merger with the UK-based firm Stater Blockchain.

But the decision to not go ahead with the purchase of the bitcoin mining rigs is a bit curious. After all, Long Blockchain said when it announced the Stater deal just a few weeks ago that the merger would "complement" its acquisition of the bitcoin equipment.

Shares of Long Blockchain actually rose a bit Friday, but it's worth noting that trading volume was extremely light. And the overarching trend for the stock over the past few weeks is still down.

Related: Forget bitcoin. Here come the blockchain ETFs

Bitcoin prices have tumbled after nearly hitting $20,000 in December. The price briefly fell below $8,000 Friday due to fears of more regulation worldwide. Ethereum, litecoin, ripple, cardano and numerous other cryptocurrencies have plunged as well.

India was the latest government to announce tougher new measures, joining South Korea and China. The Securities and Exchange Commission in the U.S. has also sounded the alarm bell about crypto investments that could be fraudulent.

Facebook has even announced it was banning ads that promote cryptocurrencies.

None of this is good news for Long Blockchain, or other companies that decided to hitch their wagons to the cryptocraze, only to watch their stock prices plunge along with bitcoin and other digital currencies this year.

A company now called Riot Blockchain has plunged nearly 60% so far in 2018. Last year, the company changed its name from Bioptyx and changed its business model from biotech to bitcoin.

LongFin, a financial tech firm that recently went public, and initially skyrocketed after announcing that it bought a blockchain microlender, has lost more than a third of its value this year.

And shares of a small company called Nodechain have dropped by more than 40% this year as well. Nodechain recently got into the cryptocurrency mining business last December. Before that, it was a maker of electronic cigarettes called Vapetek.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 91935

Reported Deaths: 2780
CountyConfirmedDeaths
Hinds6903153
DeSoto532153
Harrison368771
Jackson334367
Madison318086
Rankin313473
Lee254066
Jones236078
Forrest231069
Washington215671
Lafayette203039
Lauderdale1984123
Bolivar177465
Oktibbeha173749
Lamar156633
Neshoba1524103
Panola140926
Sunflower138543
Lowndes138457
Warren136650
Leflore134380
Pontotoc120416
Pike120148
Monroe117665
Scott115925
Copiah115433
Coahoma110927
Holmes108458
Marshall106714
Grenada104535
Lincoln104453
Yazoo103429
Simpson100142
Union96524
Tate94537
Leake93535
Adams89135
Wayne87121
Pearl River84850
Marion83633
Covington79321
Prentiss78617
Alcorn75310
Newton74722
Itawamba74121
George73913
Tallahatchie73418
Winston71919
Tishomingo65035
Attala63625
Chickasaw63524
Tippah63516
Walthall58925
Clay56216
Hancock55420
Noxubee54015
Jasper53615
Clarke52538
Smith51714
Calhoun50612
Tunica47213
Montgomery45020
Claiborne44916
Lawrence42212
Yalobusha41314
Perry39016
Humphreys36915
Quitman3625
Stone34611
Greene33516
Webster32813
Jefferson Davis32211
Carroll30812
Amite30710
Wilkinson30117
Kemper28515
Sharkey25812
Jefferson2359
Benton2151
Franklin1863
Choctaw1775
Issaquena1033
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 128818

Reported Deaths: 2284
CountyConfirmedDeaths
Jefferson18648332
Mobile12949288
Montgomery8560170
Madison736573
Tuscaloosa7015112
Lee558259
Shelby550149
Baldwin502148
Marshall376342
Etowah326344
Calhoun321139
Morgan312925
Houston260621
Elmore247547
DeKalb230119
St. Clair218134
Walker217780
Talladega199925
Limestone191919
Cullman180017
Franklin172728
Dallas172526
Russell16912
Autauga162424
Lauderdale159231
Colbert157224
Escambia154324
Blount150413
Jackson146610
Chilton143325
Dale128042
Covington127027
Coffee12388
Pike11329
Tallapoosa112483
Chambers110642
Clarke104417
Marion91428
Butler90238
Barbour8097
Marengo69319
Winston68512
Lowndes64327
Pickens62214
Bibb6179
Hale60828
Bullock58514
Randolph58512
Lawrence57620
Monroe5708
Washington54513
Geneva5404
Perry5356
Wilcox52911
Cherokee52816
Clay5187
Conecuh51611
Crenshaw51531
Macon46619
Henry4524
Sumter41719
Fayette4128
Choctaw34212
Lamar3302
Cleburne3116
Greene29915
Coosa1573
Out of AL00
Unassigned00
Tupelo
Clear
65° wxIcon
Hi: 81° Lo: 58°
Feels Like: 65°
Columbus
Clear
65° wxIcon
Hi: 83° Lo: 60°
Feels Like: 65°
Oxford
Clear
59° wxIcon
Hi: 80° Lo: 55°
Feels Like: 59°
Starkville
Clear
64° wxIcon
Hi: 80° Lo: 57°
Feels Like: 64°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather