Ex-Iced Tea Maker Long Blockchain Is Buying Bitcoin Miners Now

The former beverage company is buying $4.2 million of AntMiner gear and setting up a mining facility in a Nordic country, according to an SEC filing.

AccessTimeIconJan 5, 2018 at 6:33 p.m. UTC
Updated Sep 13, 2021 at 7:20 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Long Blockchain Corp. the former beverage company that announced a pivot to blockchain technology last month, is now planning to enter the bitcoin mining business, a new filing shows.

According to a filing with the Securities Exchange Commission on Jan. 5, Long Blockchain Corp, the publicly traded company that was rebranded from Long Island Iced Tea, is in the process of purchasing 1,000 units of AntMiner S9 manufactured by the China-based Bitmain.

This move came just weeks after the firm announced its business pivot, which caused its stock price at the U.S. exchange NASDAQ to surge nearly 200 percent. Similar trends in market euphoria were also seen for other public stocks that announced business strategy shifts to areas related to blockchain.

In a press release, Long Blockchain said the mining facilities would be located in a Nordic country, without specifying which one. But the agreement included in the SEC filing includes a hint: It states that the vendor will notify the purchaser when the products arrive in Iceland.

Further, the purchase price will be $4.2 million, which includes $2.9 million cash as well as an issuance of 260,000 shares of Long Blockchain's common stock. It is not clear from the filing whether Long Blockchain is buying the equipment directly from Bitmain or from a third party.

According to the document, this purchase is scheduled to close by Jan. 31 only if Long Blockchain Corp. is able to obtain the required financing before that.

As such, Long Blockchain announced in the same document it is issuing additional 1.6 million shares of common stock at a public offering price of $5.25 per share, aiming to raise approximately $7.7 million in net proceeds.

Philip Thomas, CEO of Long Blockchain Corp. said in the announcement:

"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 blockchain-related revenue through the accumulation of bitcoin."

Mining chip image via CoinDesk's archive.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.