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LM Funding America Inc. (LMFA) announced it raised approximately $23 million through a combination of a $12.6 million registered direct offering and a $10.4 million private placement. The company stated it will use the net proceeds primarily to purchase additional Bitcoin for its treasury.
The Tampa-based company operates as a Bitcoin treasury and mining business. LM Funding launched its Bitcoin treasury strategy in 2021 and added mining operations in 2022. The company reported it has accumulated 150 Bitcoin and established a path to 26 megawatts of owned mining capacity.
According to the company, its mining operations segment currently generates operating income and contributes Bitcoin to the treasury while helping offset public company overhead costs.
LM Funding also announced plans to acquire an 11 MW mining site in Columbus, Mississippi from Greenidge Generation, which the company said it will fund from its balance sheet. The acquisition is intended to expand the company’s mining capacity.
"Our model combines Bitcoin mining with direct purchases to build treasury holdings in a disciplined way," said Bruce Rodgers, Chairman and CEO of LM Funding. "These offerings strengthen our balance sheet, facilitate future capital raising, and position us to create long-term shareholder value."
Maxim Group LLC served as placement agent for both offerings. The registered direct offering was conducted under an effective shelf registration statement filed with the Securities and Exchange Commission.
The information is based on a company press release statement.