LM Funding America, Inc. Provides Monthly Operational and Bitcoin Mining Update for Month Ended March 31, 2024
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Insights
The disclosed increase in Bitcoin holdings by LM Funding America, Inc. signifies a strategic accumulation of digital assets, which is noteworthy from an investment perspective. The company's ability to mine 86.4 BTC in three months and end with a balance of 163.4 BTC, valued at approximately $11.7 million, reflects a robust operational performance in the cryptocurrency mining sector.
Analyzing the figures, the company has successfully managed to increase its holdings without selling a significant portion of its mined Bitcoin, which could indicate confidence in the cryptocurrency's long-term value. Furthermore, the mention of paying off the purchase price balance for Bitmain S21 Antminer machines suggests a strong cash flow position, enabling the company to invest in capital expenditures without compromising its asset accumulation.
Investors might be interested in the company's forward-looking statements regarding the upcoming Bitcoin halving event. Historically, such events have influenced Bitcoin's price and mining profitability. The company's anticipation of entering new hosting agreements post-halving could potentially impact its operational costs and revenue. It's important for investors to monitor these developments as they could affect the company's stock performance.
The cryptocurrency market is known for its volatility and the price of Bitcoin can significantly affect the valuation of the holdings of companies like LM Funding. With the current estimated value of their Bitcoin holdings at around $11.7 million, there is a clear direct correlation between Bitcoin's market price and the company's asset valuation.
Investors should note the company's deployed hash rate, which remained consistent at 614 PH/s at the end of the quarter. The hash rate is a critical metric in assessing a mining operation's potential revenue, as it relates to the computational power used to mine and process transactions. The company's static hash rate, despite the addition of new mining equipment, might raise questions about efficiency or the potential for future expansion.
Additionally, the company's proactive approach to the Bitcoin halving event by planning to enter new hosting agreements could be seen as a strategic move to mitigate the impact of reduced mining rewards. This foresight could be reassuring to investors who are concerned about the potential decrease in mining profitability.
LM Funding's update provides a snapshot of their mining operations and financial strategy in the context of the broader cryptocurrency landscape. The company's reference to the Bitcoin halving event is particularly significant. The halving will reduce the reward for mining new blocks, which in turn affects the supply of new Bitcoins and can lead to increased prices if demand remains steady.
From a technical standpoint, the company's maintenance of a consistent hash rate despite the deployment of new Antminer machines could indicate a replacement of older, less efficient miners rather than a net increase in mining capacity. This could affect the company's future mining output and profitability, especially post-halving, when the mining reward will be lower.
It's also important to consider the company's strategic investments in mining equipment and its implications for future growth. By paying off the purchase balance for the Bitmain S21 Antminers, the company is poised to potentially increase its mining efficiency and output. However, the real test will come after the halving event, when the company will have to adapt to the new reward structure and market conditions.
Total Bitcoin holdings increased to approximately 163.4 BTC as of March 31, 2024, or approximately
TAMPA, FL, April 09, 2024 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a cryptocurrency mining and technology-based specialty finance company, today provided a preliminary, unaudited Bitcoin mining update for the month ended March 31, 2024.
| Metrics * | One Month January 31, 2024 | One Month February 29, 2024 | One Month March 31, 2024 | Three Months March 31, 2024 |
| Bitcoin Beginning Balance | 95.1 | 126.8 | 153.6 | 95.1 |
| Bitcoin Mined, net | 31.7 | 26.8 | 27.9 | 86.4 |
| Bitcoin Sold | - | - | (18.0) | (18.0) |
| Service Fee | (0.1) | (0.1) | ||
| Bitcoin Holdings | 126.8 | 153.6 | 163.4 | 163.4 |
| Approximate Miners Deployed at Quarter End | 5,950 | 5,940 | 5,940 | |
| Approximate Deployed Hash Rate at Quarter End (PH/s) | 615 | 614 | 614 |
*Unaudited
Bruce M. Rodgers, Chairman and CEO of LM Funding, stated, "Our mining operations continued to deliver solid results in March 2024. We mined enough Bitcoin in excess of operating expenses and were able to pay the purchase price balance owed on our recently acquired Bitmain S21 Antminer machines. As we approach the Bitcoin halving event, expected to occur later this month, we expect to be entering into new hosting agreements reflecting post-halving economic realities and will continue to evaluate additional purchases of Antminer machines to drive our further growth.”
The Company estimates the value of its 163.4 Bitcoin holdings at March 31, 2024, was approximately
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 risks of entering into and operating in the cryptocurrency mining business, uncertainty in the cryptocurrency mining business in general, problems with hosting vendors in the mining business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, the ability to finance and grow our cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, the potential need for additional capital in the future, changes in governmental regulations that affect our ability to collected 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
FAQ
How many Bitcoin holdings did LM Funding have as of March 31, 2024?
What was the estimated value of LM Funding's Bitcoin holdings on March 31, 2024?
What was the Bitcoin price on April 8, 2024, used for the valuation of LM Funding's holdings?
What did LM Funding's Chairman and CEO mention about the mining operations in March 2024?
How many Antminer machines did LM Funding acquire recently?
