LM Funding America, Inc. (LMFA) has experienced an increase of 59.68% in the aftermarket. However, the last trading session concluded at $3.44 with a decrease of 14.64%.
Cryptocurrency Mining Business with Purchase of Additional 4,000 Antminers
On 6th October 2021, Bitmain has stated that it has purchased an additional 4,000 S19J Pro Antminer Machines (S19J) (100 TH/s) for a total purchase price of $25.3 million. This significantly expands the scope of its cryptocurrency mining activities. The company has previously announced the purchase of 1,000 Bitmain Miner Machines for $6.3 million.
Moreover, LMFA has made a new order for 4,000 Bitmain Miner Machines worth $25.3 million. Bitmain’s S19J Pro Antminer Machines are high-efficiency, high-hash rate machines that mine the SHA-256 algorithm at a maximum hash rate of 100 TH/s and use 3,000 KW/h of electricity. Lastly, LMFA has paid deposits on the Bitmain Miner Machines but will need further funding when the rest of the purchase price is due before delivery.
LM Funding Expands into Cryptocurrency Mining Business
On 15th September 2021, LMFA announced the commencement of a cryptocurrency mining operation as part of its expansion and diversification strategy. Moreover, the company reported the purchase of 1,000 S19J Pro Miner Machines (S19J) (100 TH/s) from Bitmain. Bitmain’s S19J is a high-efficiency, high-hash-rate machine that mines the SHA-256 algorithm at a maximum hash rate of 100 TH/s and consumes 3,000 W of electricity.
LMFA thinks that mining for bitcoin is a cost-effective approach to buy the asset at a risk-adjusted exposure to the ecosystem. The company’s purchase price per machine for our initial investment of 1,000 machines will be between $6,000 and $6,500, vs $11,000 to $15,000 on the spot market. Last but not think, the firm also thinks that buying the machines in bulk enhances their projected margin per bitcoin and reduces their exposure to Bitcoin price volatility.
Second Quarter 2021 Financial & Operational Results
LMFA announced second-quarter 2021 financial results on 16th August 2021. According to the report, the net income attributable to LM Funding was $11.1 million. On June 30, 2021, the cash totaled was approximately $22.2 million, more than $11.6 million on December 31, 2020. Moreover, the company has $29.7 million in working capital. Not only this, but LMFA has declared plans to create accounting standards and controls for working with digital assets, as well as plans to buy up to $2 million worth of Bitcoin and Ether.
To build its community association receivables business both organically and via acquisitions, LM Funding is creating a digital asset technology strategy. LMFA also funded a special acquisition company, or SPAC, which completed a $103.5 million upsized IPO. LMFA has invested $6.4 million in LMAO, or around $1.17 per LMFA share, in total. Also, LMAO is looking to form a partnership in the financial services or financial technology industries.