Riot Blockchain Shares Surge to Fresh Highs


 
 
12:03 12/12/2017

Buoyed by Cryptocurrency futures debut, Riot Blockchain, Inc.RIOT  shattered previous 52 week highs and are currently trading in blue sky territory with shares up 38 percent and counting. Over 18 million shares have already traded and it’s not midday yet. This stock has been rallying for nearly 3 months from around the $4 mark to where it’s currently trading at $32. Gains like these are only found in the financial markets.

The company recently announced that its majority owned Tess Inc. ("TessPay") has entered into a non-binding letter of intent ("LOI") to merge with Cresval Capital Corp. ("Cresval") (CRV.V). TessPay is a blockchain company developing a supply chain payment platform for businesses to attempt to guarantee payment on time and in full. After the closing of the anticipated merger, TessPay will be publically traded on the TSX Venture Exchange (the "TSXV") and change its name to "TessPay Inc.".

According to the letter of intent TessPay will be issued 80,000,000 shares of Cresval, and the present shareholders of Cresval will retain 8,400,000 shares of the combined company TessPay post-merger. Riot Blockchain will receive 41,600,000 shares resulting from its 52% ownership of TessPay.



The merger would be the first of Riot Blockchain's investments to become a stand-alone public company. Haywood Securities Inc acted as a financial advisor on the transaction.

Last week Riot announced that one of its strategic portfolio holdings, goNumerical Ltd (dba "Coinsquare"), has closed a CAD $10.5 million investment at a CAD $110.5 million post-money valuation. A prominent global asset manager with over a trillion dollars under management led the round with a CAD $10 million investment. goNumerical operates Coinsquare, a leading Canadian digital currency exchange. The new valuation for Coinsquare is over 3x the valuation from Riot's investment in September, 2017.

Coinsquare has reported profitable operations and has grown over 300% in several different financial metrics since Riot's investment in September. Although competitor information is not widely available, Riot believes Coinsquare is one of the largest, if not the largest, Canadian digital currency exchange.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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