Shares of Long Blockchain Corp. enjoyed a 4 percent increase on Friday, after the company announced that it will no longer be purchasing 1,000 Bitcoin mining rigs. Instead, the company formerly known as Long Island Iced Tea will focus its attention on its proposed merger with British technology firm Stater Blockchain Ltd.
LBCC Blockchain Strategy Committee head Shamyl Malik said:
"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."
According to Bloomberg, Malik also suggested that the company will continue to keep its options open on that front and may revisit the decision if circumstances warrant: "We will continue to evaluate the purchase of mining equipment for Bitcoin and other digital currencies as part of our larger blockchain initiative."
Long Island Iced Tea Corp. rebranded itself as Long Island Blockchain Corp. in late December, when Bitcoin's price was approaching $20,000 a coin. The company’s stock price saw an immediate boost from the change in focus, but share values had plummeted in the weeks since the December announcement.