TAMPA, FL, Sept. 8, 2022 (GLOBE NEWSWIRE) — LM Funding America, Inc. (NASDAQ:LMFA) (“LM Funding” or “LMFA”) announced that it has entered into a hosting agreement with Core Scientific to host and operate 1,200 bitcoin miners with the potential to expand. This deal represents LMFA’s strategic initiative to diversify among well-capitalized hosting companies and geographic facilities. This announcement is in addition to LMFA’s active hosting agreement with Compute North for 4,200 miners to be operated at their Wolf Hollow, TX facility.
Also, LMFA announced today that it is taking advantage of the opportunistic pricing environment by purchasing an additional 400 S19J Pro Miner Machines (S19J Pro) (100 TH/s) from Bitmain for a total purchase price of approximately $1.26 million. This brings LMFA’s total mining fleet to over 5,400 purchased machines. S19J Pro is a high efficiency, high hash rate SHA-256 machine mining algorithm produced by Bitmain that generates a hash rate of 100 TH/s.
Bruce M. Rodgers, Chairman and CEO of LM Funding, commented: “Last year we added our business to Bitcoin mining when Bitcoin was approaching record highs. We purchased 5,000 machines and the purchase price adjusted downwards as the price of Bitcoin fell in 2022. We are leveraging some of the liquidity created by our previous contracts, and today’s favorable mining machine prices, to increase our projected total hashrate by the end of the year to 544 Petahash. We believe in Bitcoin’s long-term growth and are committed to acquiring Bitcoin efficiently.”
About LM Funding America
LM Funding America, Inc., together with its subsidiaries, is a technology-based specialty financing company that provides financing to non-profit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado and Illinois, by financing a certain portion of the associations’ rights to overdue accounts that are selected by the associations as a result of unpaid association assessments. LMFA has also entered the cryptocurrency mining business through its subsidiary US Digital Mining and Hosting Co., LLC.
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 denote forward-looking statements. Forward-looking statements are not guarantees 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, uncertainties created by the COVID-19 pandemic, the risks of entering into and operating in the cryptocurrency mining business, the capacity of our bitcoin mining machines and our related ability to purchase electricity at reasonable prices, ability to fund our planned cryptocurrency mining operations, our ability to obtain new accounts in our special financing business at appropriate rates, our need for capital, our ability to hire and retain new employees, changes in government regulations affecting our ability to raise sufficient amount of 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 significant negative effect on our business, financial position and operating results.
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