Former Iced Tea Maker Cancels Purchase of Bitcoin Mining Rigs

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It hasn’t even been a month since Long Blockchain, former iced tea maker, agreed to purchase 1,000 AntMiner S8 crypto mining rigs, but already they’re backing out from the plan. The company announced their decision in a filing with the US Securities and Exchange Commission on Friday, but did not expound on the reasons why.

The original plan to purchase the rigs were revealed back in January, with the company moving to raise $4.2 million by January 31 in order to complete the transaction. Back then, the company had announced that they would be issuing shares of common stock worth 1.6 million so they can raise $7.7 million. The company’s stock sale had already ended, but it is unknown just how profitable it actually was.

In a press release, head of Long Blockchain’s blockchain strategy committee Shamyl Malik said that the plan to buy bitcoin mining computers is just one part of the picture. Although the AntMiner transaction was cancelled, he reiterated that the company was still a firm believer of cryptocurrency.

“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 [a bhlockchain startup].”

Long Blockchain initially negotiated the buy of AntMiners as “a no-risk option to the company.”

 

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