The stock of Riot Blockchain Inc (NASDAQ:RIOT) closed at $6.87 losing 5.89% in yesterday’s trading session. In the previous year, this Nasdaq listed company caught headlines after its pivot to cryptocurrency related services. The latest reports indicate that the U.S. Securities and Exchange Commission has proceeded to direct a subpoena to the company, a matter that has resulted in much speculation among the concerned parties.
It was in the company’s annual report that the disclosure was made and eventually it was revealed on April 17. In its filing, Riot Blockchain outlined that the SEC had for quite some time been requesting for specific information from the company.
In reviewing Riot Blockchain’s public filings, the Securities and Exchange Commission went ahead to inquire about several asset classifications of the company. The company has proceeded to make it known that it will cooperate with the request forwarded by the SEC. Not many companies typically make it through such a probe.
It wasn’t an easy time for the company to undergo the probe by the U.S. securities regulator. Back in January, the agency unleashed a statement indicating that it would be scrutinizing all companies that had pivoted towards Blockchain in the past few months. That was regardless of significant interests emanating from a large number of investors.
The SEC has made it known that for some time it has been scrutinizing the disclosures of the various public companies that took to shifting business models in a bid to take advantage of the perceived promise of the distributed ledger technology.
It has also been keen to find out whether or not the associated disclosures were in compliance with securities loss. Jay Clayton, who happens to be the SEC chairman, has been rather vocal regarding the latest developments. In making his statements, he has kept on referring to the fact that the stock price of Riot Blockchain in December soared by quite a significant margin.
A U.S. subpoena arrived in less then a week after Riot Blockchain made the announcement to unveil its planned cryptocurrency and futures exchange. In another report, it had been disclosed that the company provided new details regarding a potential delisting from the Nasdaq. It has resulted in much speculation.