LM Funding Announces Digital Assets Strategy
LM Funding America (NASDAQ: LMFA), a specialty finance company, announced plans to purchase up to $2 million in digital assets, including Bitcoin and Ether. This acquisition will amount to approximately 10% of LMFA's total assets and is part of its capital allocation strategy. The company aims to enhance its operational capabilities in digital transactions through organic growth and acquisitions. The announcement follows a successful IPO by its affiliate, LM Acquisition Opportunities, which raised $103.5 million. LMFA plans to develop internal controls to manage these digital assets effectively.
- Announcement of a $2 million digital asset purchase, representing 10% of LMFA's assets.
- Potential for increased value preservation in reserve accounts for community associations.
- Aims to enhance digital transaction capabilities, potentially increasing attractiveness for financial technology acquisitions.
- Uncertainty regarding the success of the digital assets strategy.
- Risks associated with the COVID-19 pandemic impacting business operations.
- Potential negative press about the debt collection industry could affect LMFA.
TAMPA, FL / ACCESSWIRE / April 23, 2021 / LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or "LMFA"), a technology-based specialty finance company, today announced plans to purchase up to
"We believe certain digital assets already provide an alternative to storing value in cash and cash equivalents while the blockchain technology used by other digital assets will provide the backbone for a variety of transactions in the near future", said Bruce M. Rodgers, Chairman and CEO of LMFA. "The community associations that we service are required to maintain reserve accounts that could benefit from the value preservation features of some digital assets. Additionally, we foresee increased use of blockchain technology and digital assets throughout the real estate transactional ecosystem. Our interest in developing and acquiring transactional capabilities involving digital assets requires that we implement the corporate governance and internal controls necessary for a public company to hold and transact business using digital assets. We plan to purchase, hold, and account for our newly acquired digital assets using vendors who have established best practices within the digital asset ecosystem."
On January 28, 2021, LM Acquisition Opportunities, Inc., a special purpose acquisition company ("LMAO") sponsored by LMFA, completed an upsized initial public offering resulting in proceeds of
LMFA intends to announce further developments, including digital asset purchases and material vendor relationships, as they materialize.
About LM Funding America:
LM Funding America, Inc., together with its subsidiaries, is 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, uncertainty regarding the success of the digital assets strategy announced in this press release, our ability to acquire new accounts in our specialty finance business at appropriate prices, our ability to hire and retain new employees, 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 the company's business, financial condition, and results of operations.
Company Contact:
Bruce M. Rodgers, Chairman and CEO
LM Funding America, Inc.
Tel (813) 222-8996
investors@lmfunding.com
SOURCE: LM Funding America, Inc.
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FAQ
What is LMFA's digital asset strategy announced in April 2021?
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