Riot Blockchain Inc (NASDAQ: RIOT) is having an overwhelmingly strong day in the market today, and for good reason. In a press release issued early this morning, the company announced that it has entered into a Letter of Intent surrounding a key acquisition. Of course, this led to excitement among investors and sent the stock soaring. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to RIOT ahead.
RIOT Gains On LOI
As mentioned above, Riot Blockchain is having an incredibly strong start to the trading session this morning after announcing that it has entered into an LOI. According to the LOI, the company plans to create a newly formed subsidiary and acquire Logical Brokerage Corp. Logical Brokerage is focused on the introduction of futures to the market and located in Miami, FL. The company is registered with the Commodity Futures Trading Commission and a member of the National Futures Association.
In the release, RIOT said that it intends to pursue launching a digital currency exchange as well as a futures brokerage operation. The intention is for this to take place in the United States. At the moment, the CFTC and NFA do not regulate spot-market digital currency exchanges or activity. However, the CFTC does hold jurisdiction over the sector and met with the Senate Banking Committee surrounding cryptocurrency regulation yesterday. In a statement, John O’Rourke, Chairman and CEO at RIOT, had the following to offer:
We have identified a substantial market need for additional options to serve a growing customer desire to transact in digital currencies within the U.S… Logical Brokerage helps provide a platform from which to service this market.
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