Former Iced Tea Firm Plans to Mine Bitcoin in the Nordic Region
Originally published on: Bitcoin News
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January 06, 2018
Just recently we reported on the beverage firm Long Island Iced Tea Corp and its share price increase by more than 400% immediately after it rebranded to “Long Blockchain Corporation.” On January 4, the company filed with the U.S. Securities and Exchange Commission (SEC), stating its intentions to mine bitcoins and purchase 1,000 Bitmain manufactured Antminer S9 mining rigs.
The Iced Tea Company Is Shifting Gears With Plans to Mine Bitcoin
The specialized drink company, ‘Long Island Iced Tea Corp,’ is now known as the ‘Long Blockchain Corporation’ (LBC), and it seems the firm had other intentions for changing its name. The company made headlines all over the world when it rebranded, and its shares spiked by 432 percent in a single day. The latest business move shows LBC is planning to operate a mining facility located in the Nordic country, as the delivery of miners shows an Iceland destination. However, it’s unconfirmed at the moment precisely where the mining facility will be located.
“The mining equipment will be installed in a world-class third-party data center experienced in cryptocurrency mining and located in a Nordic country — Long Blockchain expects to benefit from an established infrastructure and competitive energy costs using geothermal and hydro-electric power sources,” explains the firm’s announcement.
Generating Revenue Through the Accumulation of Bitcoin
The firm’s CEO, Philip Thomas, explained the company’s business transition in a statement saying, “We view this transaction as an important and validating initial step in the company’s progression into blockchain technology.”
The commencement of our mining operations places us on a path to generating revenue through the accumulation of bitcoin — This platform will help support our longer-term strategy of engaging in partnerships, investments and acquisitions in the blockchain ecosystem.
Long Blockchain Will Join Other Bitcoin Miners That Have Congregated In the Nordic Region
The initial rebrand announcement revealed the company’s intentions to pivot its business model. “We will, in the coming weeks and months, be taking a series of steps related to our efforts to assemble a world-class team of industry professionals to help us realize this vision,” explained Thomas last month.
The purchase and sale will close on the 31st day of January 2018, and the cost of the 1,000 Antminer S9 mining rigs and 1,000 PSUs will cost $2,900,000 USD. Alongside this, the deal filed with the SEC also includes the issuance of two hundred and sixty thousand shares of company common stock.
The Nordic region is known for businesses congregating in the area to mine bitcoin most notably in Iceland. The reason for this is because of the Nordic region’s abundant resources in geothermal and hydro-electric power. Other mining businesses located within the territory of those countries include Genesis Mining, Bitfury.
What do you think about this drink company changing gears to start a mining facility in the Nordic region? Let us know in the comments below.
Images via Pixabay, Long Island Iced Tea, and Bitmain.
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