Long Blockchain Corp (NASDAQ:LTEA): A Ground Floor Blockchain Opportunity

Long Blockchain Corp (NASDAQ:LTEA) wild ride is showing no signs of slowing, days after announcing plans to enter the fast-growing blockchain space.The stock has surged by more than 200%, in the wake of the company changing its name and rebranding itself to focus on blockchain technology.The company is the subject of renewed investor interest on Wall Street after announcing plans to partner with or invest in companies that develop decentralized ledgers commonly known as blockchain. Investor’s reaction to the news has been swift if the current trading levels are anything to go by. Stock Price Analysis Long Blockchain joins a growing list of companies that have seen their share price explode on announcing plans to pursue growth opportunities around cryptocurrencies. Late last year, the stock was languishing at the $2.4 handle. Since then, it has gapped higher to record highs of $9.4 a share.However, it has since pulled back and is currently trading at the $6.5 handle. All indication is that the stock could continue higher given recent announcements. LTEA Daily ChartOn the technical side, the stock faces immediate resistance at the $8 handle, above which it could make a push for its 52-week high of $9.4. A break above new highs could send the stock parabolic, similar to what we saw with Riot Blockchain Inc (NASDAQ:RIOT). RIOT Daily Chart Blockchain Transition While Long Blockchain has announced plans to invest in blockchain technology, it is not planning to leave the business it has come to be associated with, over the years. The company plans to continue operating its 10,000 square foot supply warehouse, from which it distributes nonalcoholic beverages.

“The Company intends to request NASDAQ to change its trading symbol in connection with the name change. The Company will continue to operate Long Island Brand Beverages, LLC as a wholly-owned subsidiary and maintain the focus of this business on the ready-to-drink segment of the beverage industry, specifically, premium, ‘better-for-you’ brands marketed at an affordable price,” Long Blockchain in a statement.

However, the Chief Executive Officer, Philip Thomas, says the focus will be on pursuing investment in blockchain technology in a bid to generate more shareholder value. The company plans to become a significant participant in the evolution of the technology which has shown potential to have a substantial impact on various industries.Long Blockchain is currently evaluating multiple opportunities as part of its core business change push. One of the proposed plans includes providing exchange and infrastructure services for blockchain finance industry. The company is also considering setting up a new smart contract platform powered by blockchain technology.The company has since entered into a two-million-dollar convertible debt facility with the option of extending it with an additional $2 million. The funds are to be used to support the company’s exploration of investment opportunities on blockchain technology.Talent Poach In a bid to get a foothold of the blockchain technology with speed, Long Blockchain has moved to enhance its expertise in the field with two key appointments. Shamyl Malik, Global Head of Trading at Voltaire Capital, and Som Ghosh, a technology entrepreneur, have been appointed to the company’s board of directorsMalik joins the group as a financial technology expert after heading FX Electronic Trading at Morgan Stanley. Mr. Ghosh, on the other hand, is a blockchain technology entrepreneur with over 11 years’ experience in technology and computing.

“We are thrilled to have Shamyl and some join the Board during this exciting period of growth and evolution. They bring a wealth of experience and knowledge in the financial technology sector, and we are confident that they will help to shape the future of the Company as it pivots into blockchain technology,” said Mr. Thomas.

Long Blockchain latest aspirations follow the posting of a net loss of $3.9 million for the three months ended September 30, 2017. Sales in the quarter came in at $1.6 million. Net loss for the first nine months of the year stood at $11.6 million on sales of $3.9 million. Bottom LineIt goes without saying that Long Blockchain has benefited a great deal from the announcement it is set to tweak its core business.Last year, blockchain was one of the hottest areas of Wall Street, a trend expected to continue in 2018 as new applications for the technology emerge. Blockchain technology could have a similar impact as the internet had in the mid-nineties given its significant impact in industries ranging from finance to manufacturing and healthcare.Long Blockchain is looking to capitalize on the blockchain space by developing brilliant applications. For investors looking to ride the blockchain boom, LTEA represents a ground floor opportunity.We will be updating our subscribers as soon as we know more. For the latest updates on LTEA, sign up below!Disclosure: We have no position in LTEA and have not been compensated for this article.