Shares in a US company that makes premium iced teas increased 500 per cent in pre-market trading on Thursday, after it said it would shift its focus to invest in blockchain technology.
Long Island Iced Tea Corp said it will change its name to Long Blockchain Corp, and registered the new web domain www.longblockchain.com.
It will continue to make soft drinks through a wholly-owned subsidiary, but said it was “shifting its primary corporate focus towards the exploration of an investment in opportunities that leverage the benefits of blockchain technology” – a type of decentralised ledger technology most well-known for powering bitcoin.
Nasdaq-listed shares in the company rose as much as 505 per cent in pre-market trading, and at publication time were up 320 per cent. That increase would lift the group’s market capitalisation from $23.8 million (€20 million) to more than $75 million.
As with many of the recently christened crypto companies – a list that includes former makers of juice, sports bras and sofas – Long Blockchain so far has little to show for its aspirations. It has no agreements with any blockchain firms, and says “there is no assurance that a definitive agreement with these, or any other entity, will be entered into or ultimately consummated”.
Cryptocurrencies
Long Island is not the first company to benefit from the recent surge in investor interest in blockchain and cryptocurrencies. Earlier this week, US regulators stepped in to stop trading in Crypto Company, a penny stock whose value surged more than 2,000 per cent this month.
Crypto Company, which was created over the summer through a reverse takeover of a company that previously made parts for sports bras, says it is building a cryptocurrency trading and advisory business.
Other companies that have “pivoted” toward blockchain-related ventures in recent weeks include gold miners, an e-cigarette manufacturer and a biotech group.
On Wednesday, shares in furniture maker Nova Lifestyle also jumped after it said it would create a unit focusing on blockchain. Diagnostic company Bioptix’s shares soared 400 per cent after it changed its name to Riot Blockchain in October. – Copyright The Financial Times Limited 2017/ Bloomberg / Reuters
