LM Funding America, Inc. Announces Strategic Collaboration with Arthur Mining to Support Development of New Hosting Sites with Dedicated Capacity Expected to Drive Revenue Growth and Significant Cost Efficiencies
LM Funding America (NASDAQ:LMFA) announced a strategic collaboration with Arthur Mining to develop a new 15 MW cryptocurrency hosting site near Oklahoma City. LM Funding will loan $2.5 million to a joint venture, primarily owned by Arthur Mining, to expedite the site's completion by end of June 2024. This agreement includes a hosting contract for 3,000 Bitmain Antminer S19j Pro machines at cost for nine months, promising significant savings. Additionally, LM Funding and Arthur Mining plan to explore a 60 MW site adjacent to the current location for further expansion. The collaboration aims to enhance LM Funding's mining capabilities and profitability through cost-effective and scalable solutions.
- LM Funding's loan of $2.5 million accelerates the 15 MW site's completion.
- Hosting contract for 3,000 Bitmain Antminer S19j Pro machines promises cost savings.
- Potential development of a new 60 MW site adjacent to the current location indicates future growth.
- The collaboration allows LM Funding to scale its mining capabilities.
- Expected complete buildout by end of June 2024 offers a clear timeline.
- Vertical integration with Arthur Mining enhances operational efficiency.
- Nine-month hosting at cost provides significant cost savings.
- Loan of $2.5 million may impact LM Funding's cash flow.
- Dependence on Arthur Mining for hosting could pose operational risks if there are delays.
- Potential expansion to a 60 MW site may require additional capital investment.
- The success of the hosting sites is contingent on timely completion which may not be guaranteed.
Insights
LM Funding America's announcement of a strategic collaboration with Arthur Mining to develop a 15 MW hosting site and potential future 60 MW site is a significant move in terms of scaling their cryptocurrency mining operations. The company has committed to loaning
From a financial perspective, this investment could potentially lead to substantial cost savings and revenue growth in the short-term through the deployment of 3,000 Bitmain Antminer S19j Pro machines at cost for approximately nine months. This arrangement is expected to lower operational costs and increase mining efficiency. Long-term, the development of an adjacent 60 MW site further positions LM Funding to scale its operations significantly, which could drive revenue growth and enhance profitability.
However, investors should be aware of the risks associated with the volatile nature of the cryptocurrency market and the substantial initial capital investment. It is essential to monitor the progress closely, especially the timeline and cost management of these projects to ensure that they remain within budget and schedule.
Deploying 3,000 Bitmain Antminer S19j Pro machines indicates LM Funding America's commitment to leveraging high-efficiency mining hardware, which is critical in the cryptocurrency mining industry. The S19j Pro is known for its high hash rate and energy efficiency, making it a favorable choice for large-scale operations. Hosting these machines at cost for nine months is a strategic move that can reduce operational expenses and improve profitability margins during the initial phase.
The expansion plans for a new 60 MW site suggest significant growth ambitions. The combined capacity of 75 MW (15 MW + 60 MW) would put LM Funding in a competitive position within the industry, allowing for substantial scalability. However, the successful deployment of such a large infrastructure will require robust planning, execution and continuous monitoring to avoid technical and operational challenges.
This partnership with Arthur Mining, reputed for its deep hosting expertise and infrastructure, should mitigate some risks associated with managing large-scale mining operations, allowing LM Funding to focus on its core competencies.
Tampa, FL, June 07, 2024 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or the "Company"), a cryptocurrency mining and technology-based specialty finance company, today announced a strategic collaboration to support the development of a new 15 MW hosting site being developed by Arthur Mining Inc., near Oklahoma City. In connection with collaboration, LM Funding has committed to loaning
As part of the agreement, the Company has entered into a hosting contract with Arthur Mining for approximately 3,000 of the Company’s Bitmain Antminer S19j Pro machines to be deployed at the new hosting site upon completion of the buildout, which is expected by the end of June 2024. Furthermore, Arthur Mining has agreed to host these machines at cost for approximately nine months, which is expected to result in significant cost savings for LM Funding. In addition, LM Funding and Arthur Mining plan to explore the development of a new 60 MW site adjacent to the current 15 MW Oklahoma City site, which would support the cost-effective deployment of additional mining machines for the Company.
Bruce Rodgers, Chief Executive Officer of LM Funding, commented, “We look forward to working with Arthur Mining to advance development of the new 15 MW hosting site, as well as the potential new 60 MW site. We believe these sites would provide us with cost-effective, short and long-term solutions to host our S19J Pros, allowing us to rapidly scale our cryptocurrency mining capabilities. Partnering with Arthur Mining enables us to reap the benefits of vertical integration, while remaining focused on our core competencies and without the operational or integration risks. Specifically, we look forward to leveraging their deep hosting expertise and infrastructure while positioning ourselves to accelerate growth and enhance profitability."
About LM Funding America
LM Funding America, Inc. (Nasdaq: LMFA), together with its subsidiaries, is a cryptocurrency mining business that commenced Bitcoin mining operations in September 2022. The Company also operates a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois, by funding a certain portion of the Associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments.
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guaranties of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company's most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, uncertainty created by the COVID-19 pandemic, the risks of entering into and operating in the cryptocurrency mining business, the capacity of our bitcoin mining machines and our related ability to purchase power at reasonable prices, the ability to finance our planned cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, the need for capital, our ability to hire and retain new employees, changes in governmental regulations that affect our ability to collect sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.
Contact:
Crescendo Communications, LLC
Tel: (212) 671-1021
Email: LMFA@crescendo-ir.com
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