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Former Beverage Company Long Blockchain About to Enter Bitcoin Mining



Former beverage firm Long Blockchain Corp., which recently announced a shift to blockchain technology, is planning to enter the bitcoin mining business.

According to a new filing with the Securities Exchange Commission, Long Blockchain Corp, the publicly traded company formerly known as Long Island Iced Tea, is working on the purchase of 1,000 units of AntMiner S9 produced by the China-based Bitmain.

This move came weeks after the company announced its shift in business, which caused its stock price at the U.S. exchange NASDAQ to soar by almost 200%.

Similar tendencies in the market were also seen for other public stocks that announced business strategy turnarounds to areas related to blockchain.

A press release indicated that Long Blockchain would have mining facilities in a Nordic country, without identifying which one.

However, the agreement included in the SEC filing had a hint: It states that the vendor will inform the purchaser when the products arrive in Iceland.

Additionally, the purchase price has been set at $4.2 million, which includes $2.9 million cash as well as an issuance of 260,000 shares of Long Blockchain’s common stock.

It is vague from the filing whether Long Blockchain is purchasing the equipment directly from Bitmain or from another company.

According to the document, this purchase is slated to close by January 31 only if Long Blockchain Corp. is able to acquire the required financing before that.

As such, the company declared in the same document it is issuing additional 1.6 million shares of common stock at a public offering price of $5.25 per share.

It is seeking to raise an estimated $7.7 million in net proceeds.

Philip Thomas, the company’s CEO, said in the announcement:

“We view this transaction as an important and validating initial step in the Company’s progression into blockchain technology.

“The commencement of our mining operations places us on a path to generating blockchain-related revenue through the accumulation of bitcoin.”

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