The Long Island Iced Tea Corporation saw its stock price skyrocket Thursday after it announced that it would change its name to include the word “Blockchain,” highlighting the craze across the financial sector for all things cryptocurrency-related.
Long Island Iced Tea Corporation, now officially known as “Long Blockchain Corporation” more than doubled its stock price after the announcement, jumping from a close of $2.45 per share on Wednesday to as high as $7.97 on Thursday when trading began—a 225.31 percent increase.
In a press release, the company claimed the name change was part of an ongoing effort to shift its “primary corporate focus towards the exploration of and investment in opportunities that leverage the benefits of blockchain technology.”
Throughout the press release, the company paid considerable amount of lip service to blockchain, it was short on details as to how exactly it intends to incorporate the technology into its business model. The company said it is the “preliminary stages” of evaluating specific opportunities involving blockchain technology.
Blockchain is a term closely associated with Bitcoin and cryptocurrency but has function outside of that realm. The technology essentially distributes the task of verifying transactions across a wide network of machines and devices, created a common digital history that allows otherwise unknown parties to come to an agreement and complete transactions.
Despite the shift in name, the Long Blockchain Corporation will continue its primary business of selling iced tea. “The Company will continue to operate Long Island Brand Beverages, LLC as a wholly-owned subsidiary,” it wrote in a press release.
The company is just the latest to make a quick score off of the high demand for crypto-centric businesses. Earlier this week, a small financial technology company called LongFin saw its stock surge by 2,600 percent after announcing it was getting into the business of cryptocurrencies… see more