What the bad jobs report means for markets
TAMPA, Fla. - LM Funding America, Inc. (NASDAQ: LMFA), a cryptocurrency mining and specialty finance firm, has announced a preliminary update on its Bitcoin mining operations as of July 31, 2024.
The unaudited report shows that the company mined a net total of 135.1 Bitcoins over the seven months ending July 31, with 4.6 Bitcoins added in the last month. Despite a static potential hashrate of 639 petahash, the company's production has decreased due to 2,080 miners in transit to a new location.
LM Funding also disclosed its intent to acquire a Texas mining site, which currently has a 12 MW power capacity and the possibility of expanding to 72 MW. The site is already generating 55 petahash using immersion mining techniques. Bruce M. Rodgers, Chairman and CEO, believes that the acquisition will allow the company to utilize its entire fleet of miners and capitalize on the full 72 MW potential.
To support these expansion efforts, LM Funding secured a $5 million non-convertible loan on August 6, 2024. These funds are earmarked for purchasing additional mining infrastructure and miners. Rodgers expressed confidence in the company's growth strategy, emphasizing the use of Bitcoin holdings to finance the acquisition of power for mining or resale to the grid.
The company's Bitcoin holdings were valued at approximately $8.1 million as of July 31, 2024, based on the Bitcoin price estimate on August 10. LM Funding started its Bitcoin mining operations in September 2022 and also operates as a specialty finance company serving nonprofit community associations.
This press release contains forward-looking statements and acknowledges the various risks associated with the cryptocurrency mining business. The company's performance is subject to risks such as hosting vendor issues, machine capacity, power acquisition costs, and the need for additional capital.
The information provided is based on a press release statement from LM Funding America, Inc.
In other recent news, LM Funding America has made significant strides in its Bitcoin mining sector. The company reported that it successfully mined 86.4 Bitcoins in the first quarter of 2024, valued at approximately $4.6 million, and announced a net income of $1.9 million with a positive core EBITDA of $4.4 million.
Moreover, the company has secured a $2.5 million credit line for a tech joint venture with Tech Infrastructure JV I LLC, a joint venture affiliate of Arthur Group Inc. This move is designed to fund a new 15-megawatt hosting facility in Calumet, Oklahoma, which will house 3,000 of the company’s Bitmain Antminer S19j Pro machines.
These recent developments highlight LM Funding America's proactive approach to managing its digital asset portfolio and infrastructure. The company is considering expanding into hosting services for AI machines, a potential new revenue stream. This is part of the firm's recent initiatives, which also include a $1.5 million debt financing for strategic growth. Despite uncertainties due to upcoming legislation affecting its legacy business, the company remains confident in the enduring value of Bitcoin as an investment.
In addition, LM Funding America plans to enhance the hash rate of existing machinery through advanced software integration. With around 5,900 Bitcoin mining machines in operation, the company is actively pursuing opportunities to lower mining costs and expand its mining operations. These are some of the recent developments that have taken place within the company.
InvestingPro Insights
As LM Funding America, Inc. (NASDAQ: LMFA) continues to expand its Bitcoin mining operations and secure additional funding for growth, recent data from InvestingPro provides a deeper insight into the company's financial health and market performance. The company holds a market capitalization of $8.4 million, which reflects its size within the industry. Notably, LMFA's Price / Book ratio as of the last twelve months leading up to Q1 2024 stands at a low 0.22, indicating that the stock may be undervalued relative to the company's assets.
Despite a challenging environment for cryptocurrency mining, LMFA has managed to grow its revenue significantly, with a 298.42% increase in the last twelve months as of Q1 2024. This is further highlighted by a quarterly revenue growth of 102.15% in Q1 2024, demonstrating the company's potential to scale its operations and increase revenue streams.
InvestingPro Tips suggest that LMFA holds more cash than debt on its balance sheet, which can be a positive sign for investors looking for financial stability in a volatile market. Moreover, LMFA has experienced a strong return over the last week with a price total return of 7.67%.
However, it is important to note that the company is not expected to be profitable this year, and analysts have observed a high price volatility in LMFA's stock trades. For investors interested in a more comprehensive analysis, there are 12 additional InvestingPro Tips available, which can provide further guidance on LMFA's investment potential.
For those considering an investment in LM Funding America, Inc., the InvestingPro platform offers a fair value estimate of $4.74, which may help in assessing the stock's current price. As the company navigates the complexities of cryptocurrency mining and its associated risks, these insights can be invaluable for making informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.