Long Island Iced Tea, a former iced tea and lemonade making company, will be investing in Bitcoin Mining rigs. The move comes after the company witnessed its stock price skyrocket 500% following a name modification to Long Blockchain. The company changed its name two weeks ago, taking advantage of the Cryptocurrency euphoria that has swept the planet.
The company made public that it will offer 1.6 million at $5.25 per share, with the hope of raising $8.4 million. The company’s press release stated that the stock sale would let the company transition to a Bitcoin mining company:
“The Cryptocurrency mining equipment expected to ship in January 2018 for immediate deployment in experienced Nordic Data Center. This mining equipment is manufactured by Bitmain. Agreement with certain third parties to purchase 1,000 Antminer S9 mining rigs and 1,000 APW3++ PSUs.”
Is it Euphoria?
Other companies have also witnessed huge stock increases on basically mediocre news linked to cryptocurrencies. One good example is the case of Longfin, a small-cap stock. Recently, Longfin experienced a boom in its value – going up more than 1,300 percent – after it revealed that it would purchase a defunct cryptocurrency.
Industry experts believed that euphoria has gripped the industry, although they only see the true potential Blockchain linked cases to continue to gain momentum. Dominik Schiener, co-founder of IOTA stated:
“The entire market as it stands today, is in a bubble with more than a few dozen projects having reached unicorn valuation. This obviously won’t last long, as 2018 will be a year where we will see a major consolidation happening, with every project having to prove its merit not just to the market, but also to the public. After all, only the projects with real-world adoption and true value will prevail.”