LM Funding America, Inc. Provides Monthly Operational and Bitcoin Mining Update for Month Ended February 29, 2024
LM Funding America, Inc. (NASDAQ: LMFA) reported an increase in their total Bitcoin holdings to approximately 153.6 BTC as of February 29, 2024, valued at around $10.4 million based on an estimated BTC price of $68,000 on March 8, 2024. The company mined 26.8 Bitcoin in February, with a total of 150 Bitcoins by the end of the month. LM Funding has not sold any Bitcoin to fund operations due to a strong balance sheet and plans to continue deploying more mining machines to increase value for shareholders.
The reported increase in Bitcoin holdings by LM Funding America, Inc. reflects a strategic decision to expand their cryptocurrency portfolio, which is indicative of a broader trend among finance companies diversifying into digital assets. The company's decision not to sell any Bitcoin suggests confidence in the cryptocurrency's long-term value, especially in light of the upcoming Bitcoin halving event, which historically impacts supply and price. The valuation of their holdings, at approximately $10.4 million, represents a significant asset on the balance sheet, which could enhance shareholder value if Bitcoin's price continues to appreciate.
However, the cryptocurrency market is known for its volatility and the company's heavy investment in Bitcoin could pose risks to its financial stability should the market experience a downturn. Investors should consider the implications of LM Funding's strategy on the company's liquidity and overall risk profile, as the success of this approach hinges on the future movements of the Bitcoin market.
LM Funding's update indicates a slight decrease in the number of Bitcoin mined in February compared to January, which could be attributed to increasing mining difficulty or fluctuations in the network's hash rate. The maintenance of a nearly constant deployed hash rate suggests operational efficiency and stability in their mining operations. The company's anticipation of the Bitcoin halving event is noteworthy, as it typically reduces the reward for mining new blocks, potentially increasing the value of existing Bitcoins due to the reduced supply.
It is also worth noting the company's infrastructure-light strategy, which could imply a lean approach to capital expenditure on mining hardware, possibly reducing overhead costs and improving profit margins. The deployment of more Bitmain S21 Antminer machines is an indicator of scaling operations, which could lead to increased mining output and further growth in Bitcoin holdings. Stakeholders should monitor the company's ability to adapt to the dynamic mining landscape post-halving, as it could significantly influence their competitiveness and profitability.
The disclosure of LM Funding's Bitcoin holdings and its impact on the company's share price, post-reverse stock split, provides insight into the potential influence of digital assets on traditional financial markets. The company's buy-and-hold strategy could be seen as a hedge against inflation and a diversification tactic in a time of economic uncertainty. The valuation of their holdings per share offers a tangible metric for investors to gauge the contribution of cryptocurrency to shareholder equity.
From an economic perspective, the integration of cryptocurrency into a specialty finance company's balance sheet could signal a shift in asset allocation strategies within the industry. The emphasis on Bitcoin's value in relation to the upcoming halving event reflects the growing recognition of cryptocurrency market cycles and their potential impact on corporate financial strategies. Investors and analysts should consider the broader economic implications of such integration, including its effects on market liquidity, investor sentiment and the traditional finance sector's adoption of digital assets.
03/11/2024 - 08:30 AM
Total Bitcoin holdings increase to approximately 153.6 BTC as of Februrary 29, 2024, or approximately $10.4 million based on an estimated March 8, 2024, BTC price of $68,000
TAMPA, FL, March 11, 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 February 29, 2024.
Metrics * One Month January 31, 2024 One Month February 29, 2024 Bitcoin Beginning Balance 95.1 126.8 Bitcoin Mined, net 31.7 26.8 Bitcoin Sold - - Bitcoin Holdings 126.8 153.6 Approximate Miners Deployed at Quarter End 5,950 5,940 Approximate Deployed Hash Rate at Quarter End (PH/s) 615 614
*Unaudited
Bruce M. Rodgers, Chairman and CEO of LM Funding, stated, "We are currently executing on all fronts with 26.8 Bitcoin mined in February alone, bringing our total Bitcoin to over 150 as of the end of February. In addition, the price of Bitcoin has continued to appreciate, as we had anticipated, in advance of the next halving event. In fact, the value of our Bitcoin held at the end of February was over $10.4 million dollars based on an estimated March 8, 2024 BTC price of $68,000 , or approximately $4.28 per share after giving effect to our previously announced 1-for-6 reverse stock split that will become effective on March 12, 2024. Given the strength of our balance sheet, we have not had the need to sell any of our Bitcoin holdings to fund our operations. As a result, we believe our buy-and-hold approach, coupled with our infrastructure-light strategy, could continue to drive significant value for shareholders over the coming months as we deploy more Bitmain S21 Antminer machines and increase our deployed Hash Rate.”
The Company estimates the value of its 153.6 Bitcoin holdings as of February 29, 2024 was approximately $10.4 million as of March 8, 2024, based on an estimated March 8, 2024, BTC price of $68,000.
About LM Funding America
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.
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How many Bitcoin does LM Funding America, Inc. currently hold?
LM Funding America, Inc. currently holds approximately 153.6 BTC as of February 29, 2024.
What is the estimated value of LM Funding America, Inc.'s Bitcoin holdings as of March 8, 2024?
The estimated value of LM Funding America, Inc.'s Bitcoin holdings as of March 8, 2024, is approximately $10.4 million based on an estimated BTC price of $68,000.
How many Bitcoin did LM Funding mine in February 2024?
LM Funding mined 26.8 Bitcoin in February 2024.
Has LM Funding sold any of its Bitcoin holdings to fund operations?
LM Funding has not sold any of its Bitcoin holdings to fund operations due to a strong balance sheet.
What is LM Funding's strategy regarding its Bitcoin holdings?
LM Funding follows a buy-and-hold approach with a focus on deploying more mining machines to increase value for shareholders.
What is the impact of the 1-for-6 reverse stock split announced by LM Funding?
After the 1-for-6 reverse stock split that will be effective on March 12, 2024, the estimated value of LM Funding's Bitcoin holdings is approximately $4.28 per share.
