Name Price24H (%)
Tether (USDT)
Riot Blockchain Acquires Futures Brokerage After Crypto Pivo...
Bitcoin, News

Riot Blockchain Acquires Futures Brokerage After Crypto Pivot

Riot Blockchain, a former biotech company that pivoted to cryptocurrency last year, has acquired a registered futures brokerage.

In a filing this week with the Securities and Exchange Commission, the company said it acquired 92.5 percent of Miami-based Logical Brokerage Corp and “intends to investigate launching a digital currency exchange and a futures brokerage operation within the United States,” though it is unclear if or when such an exchange would launch.

The filing further stated that Riot Blockchain will begin announcing the results of its cryptocurrency mining operations with monthly reports. According to the document:

“…on or prior to April 17, 2018, and within 15 calendar days following the end of each calendar month thereafter for a six-month period, it will publicly announce its gross cryptocurrency production for the previous month. Initially the Company will release information for a six-month period and may discontinue such information release at any time.”

However, the filing also noted that Riot Blockchain has revenue streams in addition to its cryptocurrency miners, and that its miners may have a variable output depending on market volatility and how many of its machines are online at any given time. Therefore, the company said, its financial status cannot be determined based solely on the miners.

This acquisition may help boost Riot Blockchain’s reputation. Logical Brokerage, a member of the National Futures Association, is registered with the Commodity Futures Trading Commission. Critics had previously accused the company, formerly known as Bioptix Inc, of capitalizing on blockchain hype when the price of its stock shot up from $8 a share to roughly $40 after its rebranding. Some shareholders have since filed three class action complaints, alleging the company violated securities laws.

The company presumably aims to trade cryptocurrency futures, which are already traded by the Cboe and CME in the United States. Meanwhile, the CFTC is actively developing a new review process for further cryptocurrency futures products.

Broker image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.



Cryptocurrency news, blockchain news, markets news, cryptocurrency analysis, cryptocurrencies prices.