Source: Rpsycho/iStockphoto via Getty Images For years, the owners of an unprofitable iced-tea company watched their stock tumble. Last month, they saw it almost triple in a day after a simple name change, and the timing couldn’t have been more convenient. Long Island Iced Tea Corp., now called
Long Blockchain Corp., received an ultimatum from Nasdaq in October, when the exchange threatened to
delist it unless the market value rose above $35 million for 10 business days in a row.
It achieved that on Friday, flaunting one of the hottest buzzwords of the year to get there. When the Farmingdale, New York-based beverage business changed its name on Dec.
21, its market capitalization
soared to almost $70 million. It has stayed above the $35 million threshold since then.
The shares closed at $5.04 on Friday, the same day the company said it was buying 1,000 bitcoin-mining machines and offering as many as 1.6 million shares. The purchase may not go through if Long Blockchain doesn’t get enough funding, it said in a filing Friday.
Long Island Iced Tea wasn’t the first to use blockchain as an antidote for lackluster stock returns. Cigar manufacturers and sports-bra companies have cashed in on the market’s love affair for cryptocurrencies and their underlying technology. Read more from bloomberg.com…
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