Companies' shares soar after adding 'Blockchain' to their names

Randall Padilla
December 22, 2017

The Long Island Iced Tea Corporation is exactly what it sounds like: a company that sells people bottled iced tea and lemonade. As of Wednesday, the company had a market value of just $23.8 million, but at one point in pre-market trading had 9.76 million outstanding shares, giving the company a market value of close to $138 million. Just change your name to something blockchain.

Since 2011, Long Island Iced Tea Corp., a little-known company based in Hicksville, New York, was best known for hawking ready-made iced teas and similar refreshing beverages.

As with numerous recently christened crypto companies - a list that includes former makers of juice, sports bras and sofas - Long Blockchain so far has little to show for its aspirations.

Much of the growth is owed to bitcoin mania.

Because "blockchain" is one of the hottest corporate buzzwords you can summon in 2017, Long Blockchain's stock "zoomed" almost 200 percent after the Thursday announcement.

Philip Thomas, Long Island Ice Tea Corp's chief executive, said: "We view advances in blockchain technology as a once-in-a-generation opportunity, and have made the decision to pivot our business strategy in order to pursue opportunities in this evolving industry".

The company says it's "already in the preliminary stages of evaluating specific opportunities involving blockchain technology" and even goes onto say they're looking at buying an FCA-regulated FX broker.

Long Blockchain is just the latest in little-known micro cap stocks capitalizing on blockchain to spin heads on the trading floor, leaving some investors anxious about possible fraud and unmerited valuations.

"There's been a continued surge of crypto headlines".

Other reports by AllAboutTopnews

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