- In an interview with Business Insider, CEO John O’Rourke known as the document “one-sided” and a “hit piece” that has “wiped out significant shareholder value.”
- Riot Blockchain fell 17% Friday after CNBC reported its annual shareholders meeting used to be by no means even booked.
Shares of Riot Blockchain, one of the primary in a lengthy string of firms to boost their inventory worth by way of pivoting to blockchain, fell greater than 17% Friday morning after a damning CNBC investigation.
Anchor Michelle Caruso-Cabrera confirmed up on the swanky Boca Raton Resort and Club in Florida, the place the corporate had two times mentioned it could grasp its annual shareholders meeting simplest to cancel on the remaining minute. The resort reportedly mentioned no meeting rooms had ever been booked below the identify Riot Blockchain.
When she arrived at Riot Blockchain’s administrative center, Caruso-Cabrera discovered CEO John O’Rourke, who promptly close the door on her earlier than agreeing to speak off digital camera.
In regards to cancelling the meeting, O’Rourke, who owns 52,000 stocks — or zero.45% of the corporate — instructed Business Insider in an interview that Riot Blockchain “did not have a quorum of shareholders required for a vote” and that this used to be no longer unusual amongst public firms. The meeting’s cancellation used to be publicly introduced.
Riot Blockchain used to be at the start a biotechnology corporate referred to as Bioptix. Its inventory worth greater than tripled after saying a pivot to blockchain in early October.
O’Rourke, who joined the corporate in January, in line with RelatedIn, used to be accused of the use of the identify exchange for private acquire after promoting greater than 800,000 stocks when the inventory used to be close to close to its all-time top of $28.
“I sold less than 10% of my overall position to assist with covering tax obligations as a result of so-called phantom income tax rom the vesting of restricted stock awards,” he instructed Business Insider. “I am not wealthy and am working to build a business here.”
On its most up-to-date quarterly income document in November, Riot Blockchain reported a loss of $zero.98 in line with percentage.
The inventory is down 49.eight% to this point this yr.