Changing a company’s business model can often have some interesting consequences. For Long Blockchain Corp, things have gotten very busy these past few months. Although the company used to be in the beverage industry, they now focus on blockchain. Moreover, there is also a plan to enter the Bitcoin mining industry in the future. It is evident these new industries continue to attract a lot of mainstream attention.
It is always interesting to see companies pivot their business model. Going from beverages to blockchain is a very radical change. When the company became known as Long Blockchain Corp, company stocks soared by 200%. It is evident anything related to blockchain and cryptocurrency will result in a major hype cycle. Now that this company wants to start mining Bitcoin, things will only get even more interesting moving forward.
Another Bold Move by Long Blockchain Corp
A recent SEC filing shows how the company will purchase 1,00 Bitcoin miners. Although this is not a vast amount, it does represent the vision of the company moving forward. They have come a very long way since the Long Island Iced Tea days, that much is evident. All of the mining equipment will be purchased from Bitmain. It is a bit unclear where the units will be housed, though. There needs to be a proper supply of electricity and sufficient cooling.
Perhaps the most interesting part of this purchase is how the funds will be transferred. A sum of $2.9m will be paid in cash. The remainder, around $1.3m, will be paid in the form of company shares. An interesting approach, assuming the SEC will approve this business deal. For now, it is unclear if and when that could happen. There is no real reason to prevent this course of action either, as the company has sufficient liquidity.
How all of this will play out for Long Blockchain Corp, remains to be seen. If things go according to plan, the mining equipment will be purchased on or before January 31st. When the mining operations commence, remains unknown at this point. Cryptocurrency mining is a very competitive industry, that much everyone knows. Turning a profit is a lot more difficult than Long Blockchain Corp may assume at this point.
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