LM Funding to Take Early Delivery of 300 S21 Bitmain Mining Machines in Advance of 2024 Bitcoin Halving Event
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Insights
The early delivery of the Bitmain S21 Antminer machines for LM Funding America, Inc. signifies an accelerated growth strategy in the cryptocurrency mining sector. This move is likely to be well-received by investors who are looking for companies with the potential for rapid expansion and increased revenue streams. The increase in mining capacity to 673 PH is substantial, as it suggests a significant boost in the company's ability to mine Bitcoin or other SHA-256 algorithm-based cryptocurrencies.
It is important to note that the efficiency of the S21 machines, with a hash rate of 200 TH/s and power consumption of 3,500 W, positions the company competitively in the market, potentially lowering operational costs and increasing profitability margins. Furthermore, the reference to the upcoming 'halving event' is important as it historically affects the supply of new bitcoins and can lead to increased Bitcoin prices, potentially enhancing the profitability of mining operations if the market reacts as it has in the past.
From a financial perspective, the early acquisition and deployment of the mining machines may have implications for LM Funding's cash flow and capital expenditures. The capital investment in mining technology often requires significant upfront costs, but the expected increase in mining output could lead to a favorable return on investment over time.
Investors should monitor the company's operational efficiency and cost management closely, as these factors will be critical in determining the actual impact on the bottom line. Additionally, the cryptocurrency market's volatility should be factored into any projections, as fluctuations in Bitcoin prices can dramatically affect mining profitability. The company's move to strengthen its position before the halving event could be a strategic play to capitalize on potential market changes.
Understanding the technical aspects of the S21 Antminer machines is key to assessing the potential impact of this news on LM Funding's business. The SHA-256 algorithm is the basis for Bitcoin mining and the high hash rate of these machines means they can process a large number of calculations per second, which is essential for mining success. The 'halving event' mentioned refers to the Bitcoin reward halving, which occurs approximately every four years and reduces the reward for mining new blocks by half. This event tends to decrease the rate at which new bitcoins are generated, leading to potential scarcity and price increases.
However, the increased competition and the need for more efficient mining operations may also lead to a 'survival of the fittest' scenario in the mining industry. Companies with the latest technology, like the S21s and access to cheap power sources will likely be better positioned to weather the reduced block rewards post-halving.
Expects machines to be located and mining by early April, increasing mining capacity to 673 PH
TAMPA, FL, March 15, 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 that it will take early delivery of the previously announced purchase of 300 Bitmain S21 Antminer machines. The S21 is a high efficiency, high hash rate machine mining SHA-256 algorithm manufactured by Bitmain that generates a hash rate of 200 TH/s with a power consumption of 3,500 W.
Bruce M. Rodgers, Chairman and CEO of LM Funding, commented, “We are pleased that we will be able to take delivery of the S21s earlier than originally expected, by the end of March. We plan to locate, energize, and commence mining with these new machines by early April, which will increase the Company’s mining capacity to 673 PH. The S21s will be leading producers through this year’s halving event and contribute to long-term revenue growth leading up to and beyond the subsequent halving event expected to occur in 2028.”
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
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