A Chinese tea retailer is seeking to break it into the Bitcoin mining business. Publicly listed Urban Tea announced the appointment of two executives to execute its encryption plan, thereby expanding its business.
City Tea praises the widespread popularity of cryptocurrencies
According to the announcement, City Tea Company hired Zhou Fengdan as the company’s new chief operating officer and Dr. Song Yunfei as an independent director. The tea retailer hopes that the new role will lead “the company’s key strategic expansion in blockchain and cryptocurrency mining.”
Zhou will look forward to implementing the company’s Bitcoin (BTC) business plan. Her experience includes working in blockchain data centers in Southeast Asia and managing crypto mines. In addition, she also has expertise in the development of encrypted hardware wallets and made an announcement.
In addition, Dr. Song also has an academic background, especially a scientist at the Chinese Academy of Sciences. In fact, his areas of expertise include blockchain technology, crypto mining, artificial intelligence, etc.
Yi Long, CEO of Urban Tea, praised the recent widespread popularity of cryptocurrencies. He also pointed out that “world financial experts” have been building confidence in cryptocurrency and blockchain technology.
Lang further commented on the appointment of Dr. Zhou and Song:
We hope that their industry expertise combined with our growth strategy will lead our expansion plans into the cryptocurrency mining industry. Looking ahead, we expect Urban Tea will begin to expand into the blockchain ecosystem, such as cryptocurrency mining, the construction and maintenance of blockchain mines, and cryptocurrency exchange operations.
Urban Tea was founded in 2011 and is headquartered in Hunan, China. It is currently listed on NASDAQ under the stock code MYT. As of press time, the company’s stock price was US$6.05 and the market value was US$45 million. This strategy is their first encryption-related business in the company’s history.
The crypto mining business of the latest tea retailer ends in a disaster
There are some precedents for tea retailers to join the cryptocurrency industry. Another listed company, Long Island Iced Tea Corp, purchased 1,000 units of Antminer S9 manufactured by Bitmain in 2018 to join the cryptocurrency mining business. Later, they changed the company’s name to “Long Blockchain Corp.”.
However, the joint venture ended in disaster. When Long Blockchain Corp acquired encryption hardware, its stock price rose 500%. However, when cryptocurrency shorts emerged in February 2018, the plans of the mining industry were undermined.
When Long Blockchain Corp’s stock was delisted by Nasdaq, the company had to sell its tea business.
The story is not over, because the FBI and the Securities and Exchange Commission subsequently launched an investigation into allegations of insider trading and securities fraud.
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