Riot Blockchain recently acquired the Miami-based Logical Brokerage Corp. after crypto pivot

Riot Blockchain Inc. recently acquired the Miami-based Logical Brokerage Corp., a registered futures broker, according to a Tuesday filing with the U.S. Securities and Exchange Commission.

According to the document, the former biotech company which recently pivoted to cryptocurrency, acquired 92.5 percent of the brokerage 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 warned 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 stocks 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 launch bitcoin futures, which are already traded on two registered exchanges in the United States. Meanwhile, the CFTC is actively developing a new review process for further cryptocurrency futures products.

Source: https://www.coindesk.com/riot-blockchain-acquires-futures-brokerage-after-crypto-pivot/