Long Blockchain Corp (NASDAQ: LBCC) is having a relatively strong day in the market today after making an announcement surrounding canceled plans to purchase mining equipment. There was also news surrounding continued efforts with regard to a potential merger. Today, we’ll talk about the news that was released, what we’re seeing from LBCC as a result, and what we’ll be watching for ahead.
LBCC Cancels Plans To Purchase Equipment
As mentioned above, Long Blockchain Corp is having a strong start to the trading session this morning after announcing that it has canceled plans to purchase cryptocurrency mining equipment. In a previous announcement, the company said that it would be acquiring 1,000 Antminer S9 mining rigs as well as 1,000 APW3++ PSUs. However, in a press release issued this morning, the company announced that it no longer had plans to purchase this equipment.
In the release, LBCC said that the cancellation comes as the result of thoughtful consideration and as advise received through consultations with outside technology advisors. Nonetheless, the company is still focused on its efforts with regard to a merger with Stater Blockchain Limited. To learn more about this potential merger, click here. In a statement, Shamyl Malik, head of the Blockchain Strategy Committee at LBCC, had the following to offer:
While we continue to believe in the value of mining equipment to the blockchain ecosystem, the purchase of these machines – which was negotiated as a no-risk option to the Company – was just one of the multiple strategic avenues we have been considering. 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.”
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