CELEBRATION, FL - La Rosa Holdings Corp. (NASDAQ: LRHC), a technology-driven real estate company with a current market capitalization of $16.31 million, announced today that it will begin accepting Bitcoin and other cryptocurrencies as payment options for its agents. This move is intended to provide more flexibility in payment methods and integrate blockchain technology into the real estate transaction process. According to InvestingPro analysis, the company is currently trading below its Fair Value, despite showing significant volatility in recent trading sessions.
The decision by La Rosa Holdings highlights the company’s response to the increasing demand for alternative payment methods in the real estate industry. According to Alex Santos, CTO of La Rosa, the introduction of cryptocurrency payments aligns with the company’s commitment to innovation and agent empowerment. Joe La Rosa, CEO, expressed that the initiative is expected to position the company at the forefront of technological innovation within the real estate sector.
La Rosa Holdings, which operates a network of cloud-based, multi-service real estate segments, sees this step as a way to modernize industry practices and offer enhanced benefits to its brokers. The company will charge a 2% fee for agents who choose to receive payments in cryptocurrency, potentially creating a new revenue stream for the firm.
The company’s business model offers agents a choice between a revenue share model or an annual fee-based model with 100% agent commissions. La Rosa provides a range of services, including residential and commercial real estate brokerage, franchising, title, education and coaching, and property management. Financial data from InvestingPro reveals the company achieved impressive revenue growth of 140% in the last twelve months, though operating with thin gross profit margins of 8.48%. InvestingPro subscribers have access to 14 additional key insights about LRHC’s financial health and market position.
This announcement is part of a series of forward-looking statements from the company, which are subject to various risks and uncertainties. These statements are not guarantees of future performance and include the company’s expectations and intentions regarding its business growth and the integration of blockchain technology. InvestingPro data indicates the company’s current ratio of 0.76 suggests careful monitoring of short-term financial obligations may be warranted. Investors seeking deeper insights into La Rosa’s financial health metrics and growth potential can access comprehensive analysis through InvestingPro’s advanced analytics platform.
La Rosa Holdings has corporate and franchised real estate brokerage offices across several states and Puerto Rico. The company’s integration of cryptocurrency payments is a testament to its focus on leveraging proprietary technology to empower agents and franchisees.
The information in this article is based on a press release statement from La Rosa Holdings Corp.
In other recent news, La Rosa Holdings Corp. reported a substantial 120% revenue surge for the first nine months of 2024, amounting to an estimated $45 million. The revenue growth was attributed to increased acquisitions of real estate brokerage franchisees and a rise in agent count. The company also disclosed plans to acquire a real estate brokerage firm with a 2023 revenue of over $19 million, further expanding its real estate portfolio.
In line with recent developments, La Rosa Holdings Corp. entered into cash advance agreements with Arin Funding LLC and Cedar Advance LLC, selling portions of its future receivables for net advances. The company has also introduced upgrades to its proprietary platform, My Agent Account, enhancing agent productivity. Leadership changes were announced, with Joseph La Rosa stepping in as interim CFO, and Siamack Alavi appointed to the board.
La Rosa Holdings Corp. has also embarked on a debt restructuring agreement, deferring payments until 2025 and reducing its debt by approximately 9.5%. The company’s goal is to reach an annualized revenue run rate of $100 million by the end of 2024. Lastly, La Rosa Holdings Corp. plans to acquire BF Prime LLC, expanding its presence into Puerto Rico, demonstrating the company’s commitment to strategic growth.
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