Iced tea maker turned cryptocurrency firm Long Blockchain seeks $8.4m of fresh capital to fuel dramatic change of direction

 
Oliver Gill
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Shares in Hicksville-based Long Blockchain rose as much as 500 per cent before Christmas (Source: Long Island Iced Tea)

Long Blockchain – the US cryptocurrency firm formerly known as, er Long Island Iced Tea – today revealed plans to capitalise on a recent marketing coup and raise $8.4m (£6.2m) by way of a share offering.

Some 1,603,294 shares in the Nasdaq-listed firm are to be made available for sale at $5.25 each.

Long Island Iced Tea shocked stock markets just before Christmas, announcing a dramatic change of direction – from beverages to blockchain.

The firm also did away with its thirst-quenching name sending investors into a frenzy and shares rocketing up as much as 500 per cent.

Blockchain technology is the platform upon which cryptocurrencies such as bitcoin settle transactions. Long Blockchain reckons it will "fundamentally changing the way people and businesses transact" – perhaps in the same way Long Island Iced Tea changed the world for the people drank it in the 1970s.

Long Island Iced Tea previously made a non-alcoholic version of the drink.

Read more: This firm's share price jumped 500pc after it added Blockchain to its name

Long Island Iced Tea started producing 18oz bottles in March 2017

Parallels

The origins of blockchain and cryptocurrencies, including the whereabouts of the bitcoin founder Satoshi Nakamoto are shrouded in mystery, and a parallel can be drawn with the origins of the famous cocktail.

New York bartender Robert Butt claims to have invented the Long Island Iced Tea as in its current incarnation during a 1972 cocktail-crafting competition. Unfortunately, the only corroborating source is Butt himself.

Others have traced the drink's origins back to Prohibition days during the 1920s to "Old Man Bishop" of Kingsport, Tennessee.

Long Blockchain, still only a few days old, said last month it plans to focus on potential partnerships, investments or acquisitions involving:

  • A blockchain software developer building blockchain infrastructure for the financial services industry
  • A London-based FCA regulated, institutional provider of FX services that are building multiple blockchain and digital cryptocurrency technology solutions for global financial markets
  • A new smart contract platform for building decentralized applications that provides scalability beyond currently available options

Shares in Long Blockchain fell over three per cent in trading this afternoon.

Read more: LONG ISLAND COMES TO THE CITY IN CLUB FOR DISCERNING DINERS

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