Riot Blockchain Inc. is poised to set up the USA’s first ‘digital currency exchange and a futures brokerage operation’.
Shares of the former biotech-equipment maker, which saw its stock skyrocket and then plunge after renaming itself to include this year’s hottest buzzword, soared as much 23 percent after the company announced plans to launch a digital-currency exchange and a futures brokerage.
Riot, which now invests in cryptocurrency and blockchain startups, said it signed a letter of intent to purchase Miami-based futures introducing broker Logical Brokerage Corp., which delegates trade execution to other firms.
John O'Rourke, chairman and CEO of Riot Blockchain, said: "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.”
The company, which last October changed its name from Biopix Inc. and shifted its business focus to digital assets from biotech, said the deal will help them focus on digital currency trading.
Shares in Riot Blockchain have had a volatile few months trading above $38 a share in December 2017, before falling back below $11 a share in January. The company’s shares were most recently at $15.52m up 20%, in Wednesday morning trade.
The extraordinary move added almost $275 million in market cap in a matter of weeks.
In a significant statement of intent in November Riot Blockchain bought 1,200 cryptocoin mining rigs.
Logical Brokerage is registered with the Commodity Futures Trading Commission ("CFTC") and is a member of the National Futures Association ("NFA").
A statement put out by the firm said Riot Blockchain intends to pursue launching a digital currency exchange and a futures brokerage operation.
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