Nasdaq Delists Long Island Blockchain
Anyone who didn’t see this coming was hiding under a rock. Long Island Blockchain Corp. (NASDAQ: LBCC) will be delisted from the Nasdaq effective Thursday morning. The company, which started out as a beverage maker, switched businesses last December, aiming to become a bitcoin mining firm.
That switch, coming as it did when bitcoin was trading at nearly $20,000, temporarily boosted the stock price by nearly 300% in late December. By the end of January, shares traded below $3 again and they have trailed lower ever since.
The collapse in bitcoin (now trading at just under $7,000) ultimately scuttled Long Blockchain’s plan to purchase 1,000 bitcoin mining computers and the firm changed direction once again, this time to a merger with U.K.-based Stater Blockchain. That didn’t work out exactly as planned either. On March 20, the two firms announced that each would take a 9.9% stake in the other, paying for the investment with stock.
At the time, Long Blockchain’s market cap was just over $35 million, the lower limit for a company to be traded on the Nasdaq. Two days later, Long Blockchain appealed an earlier notice of possible delisting, and on Tuesday, April 10, the company was notified the appeal was denied and the stock would be delisted.
Long Blockchain has said it will continue to trade on the OTCQB Market beginning Thursday under the LBCC ticker symbol.