Long Blockchain Corp. has canceled plans to open a 1,000 rig bitcoin mining farm.
The firm, which was formerly known as Long Island Iced Tea, made its eyebrow-raising pivot into the blockchain space in December, just days after the Bitcoin price hit a record $19,891 on cryptocurrency exchange Bitfinex.
At the beginning of January, Long Blockchain announced that it had inked a $4.2 million to purchase 1,000 AntMiner S9 units and set up a bitcoin mining farm in Iceland.
“We view this transaction as an important and validating initial step in the Company’s progression into blockchain technology,” Long Blockchain CEO Philip Thomas said at the time.
However, the cryptocurrency markets have entered a steep decline since that announcement, and Long Blockchain’s share price hasn’t fared much better. On Friday, LBCC shares were trading at $3.11, more than 50 percent below the all-time high it set in December.
Against this backdrop, it appears that Long Blockchain his having second-thoughts about its enthusiastic foray into the blockchain space. On Friday, the firm announced that it has canceled its plans to establish a Bitcoin mining operation, according to a statement filed with the US Securities and Exchange Commission (SEC)
“While we continue to believe in the value of mining equipment to the blockchain ecosystem, the purchase of these machines – which was negotiated as a no-risk option to the Company – was just one of the multiple strategic avenues we have been considering,” said Shamyl Malik, head of the firm’s blockchain strategy committee.
Malik said that the company remains committed to its new focus on blockchain technology, however, noting that Long Blockchain has negotiated a merger proposal with UK firm Stater Blockchain, and he added that the company may purchase Bitcoin mining equipment in the future.
“We will continue to evaluate the purchase of mining equipment for Bitcoin and other digital currencies as part of our larger blockchain initiative, which includes among other potential transactions the proposed merger with Stater,” he said.
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Last modified: June 11, 2020 10:07 AM UTC