LM Funding Expands Into Cryptocurrency Mining Business
LM Funding America (NASDAQ:LMFA) has announced a significant expansion into the cryptocurrency sector by purchasing 1,000 S19J Pro Antminers from Bitmain for $6.3 million. This strategic move aims to diversify its operations and take advantage of the U.S. Bitcoin mining landscape following China's exit from the market. The miners, with a hash rate of 100 TH/s, are expected to be delivered in mid-2022, allowing the company to potentially start mining operations by then. This initiative is projected to enhance margins and provide operating income amidst Bitcoin price fluctuations.
- Purchase of 1,000 S19J Pro Miners expected to enhance operating margins.
- Potential for significant revenue generation through own Bitcoin mining operations.
- Strategic entry into cryptocurrency mining, aligning with market opportunities.
- Investment of $6.3 million carries risks associated with cryptocurrency volatility.
- Dependence on timely delivery and operational effectiveness of new mining equipment.
Purchases 1,000 Bitcoin S19J Pro Antminers from Bitmain for
First delivery of the pro miner machines is expected during the second quarter of 2022
TAMPA, Fla., Sept. 15, 2021 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) ("LM Funding" or "LMFA") today announced that it is expanding and diversifying its business operations by launching a cryptocurrency mining business. In furtherance of this move, LMFA announced the purchase of 1,000 S19J Pro Miner Machines (S19J) (100 TH/s) from Bitmain for total purchase price of
Bruce M. Rodgers, Chairman and CEO of LM Funding, commented, “In April, we announced our intention to purchase up to
LM Funding has established a new subsidiary, US Digital Mining and Hosting Co., LLC, to operate the new mining business and is in the process of establishing a data center to host the pro miner machines. The Company expects all 1,000 newly purchased miners to be delivered between the second and third quarter of 2022, and the Company anticipates the cryptocurrency mining operations could commence as soon as the second quarter of 2022. The Company is pursuing opportunities to accelerate the start of its mining operations.
Mr. Rodgers continued, “We believe that China’s exit from Bitcoin mining has created an opportunity for U.S. public companies like ours to enter Bitcoin mining to take advantage of our low cost of capital, reliable and affordable energy supply, and stable regulatory and corporate environment. We believe Bitcoin mining operations will provide opportunities to vertically integrate our operations in hosting, finance, and other areas of the Bitcoin ecosystem.”
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. LMFA has also announced that it is entering the cryptocurrency mining business through a new subsidiary, US Digital Mining and Hosting Co., LLC.
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, 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 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.
Company Contact:
Bruce M. Rodgers, Chairman and CEO
LM Funding America, Inc.
Tel (813) 222-8996
investors@lmfunding.com
FAQ
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