CEO SELLS $ 870 THOUSAND DOLLARS IN SHARES AFTER INCLUDING "BLOCKCHAIN" IN THE NAME OF HIS COMPANY

The CEO of a biotechnology company has sold an approximate of 870 thousand dollars in shares, after the company increased its value by more than 1500% to include "blockchain" in its name.

The boom and promotion that the blockchain ecosystem has had during the last year has caused many companies to include references to this technology in their names in order to achieve greater capitalization in their actions. On this occasion, it is a biotechnology company located in Castle Rock, Colorado, which happened to be called Riot Blockchain. Its president, John O'Rourke, presented a report to the Securities and Exchange Commission of the United States (SEC) in which details the sale of 30,383 shares for an approximate value of $ 28.61 each.

The name change was made during the month of October last year, when it was still known as Bioptix. In that month they announced that they would focus on investments in technology related to the blockchain, becoming one of the first members of NASDAQ (the second electronic stock exchange in the United States), to be focused on blockchain technology and cryptocurrencies. With this statement, the value of the stock skyrocketed, going from 17 million in the second quarter of the year to 270 million in the month of December.

Similarly, during November they made the purchase of 1200 mining equipment. Its supplier was the specialized equipment company Bitmain, whose head office is located in China. These equipment were destined to mine Bitcoin and Litecoin, with the purpose of generating parallel profits to the activities of the company, according to a press release published on its page.

John O'Rourke was appointed as president of the company shortly after the change of name, with an annual salary of up to 300 thousand dollars a year and the award of 344 thousand shares in his name that would be granted in 24 monthly installments, with the option to acquire 100 thousand more at 10 dollars each.

Other companies from different sectors have also made the inclusion of the word "blockchain" in their names and have increased their value, deliberately or not. Such was the case of Long Island Ice Tea, a US company responsible for preparing iced tea that on December 21 announced the change of name and the same day increased its value by 500%. However, it is prudent to warn that the nature of a company must be investigated before being invested in it, since many seem to be using the blockchain attraction and the crypto-active ones to capitalize enormously on their coffers.

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