Penny Grabber
2 weeks ago
The PR coming will look something like this:
BTC mined 8
BTC sold 20
Net BTC holdings 136
Total $ in BTC - $14.4M
Will OMIT that $5M in debt is tied to that 14.4M
Will OMIT the 1M cash on hand at the end of Q1 is gone, the net -12 BTC at the end of April for operations is gone, and the $1M cash they have from May liquidations will get them through June until they have to sell another 20 BTC this month to fund operations.
Without dilution and warrant exercise for millions of more shares - LMFA will be down to about 124BTC by 6.30 in which 5,000,000 worth is tied to debt.
A 1:1 ratio btc held to market cap (net collaterized btc for debt) would be about 8M and will continue to drop until dilution occurs.
I wouldn't be surprised to see another RS by year end after millions of shares.
I am unsure if it's 3M shares or 5M shares.
Shares will go from 5M+ to 8-10M. Meaning shares will eventually settle back under a dollar like they have many, many times under this management over the years. Another RS will occur to avoid delisting, and the show goes on.
How much has this ticker lost accumulated? 100s of millions?
It will never change.
💩
Penny Grabber
2 weeks ago
They had 148 April 30th, and they had to sell over 18 and only generated 6.6
In March they also sold 14 - because they are out of money.
$5,000,000 of btc is pledged for a loan, so technically, 50 btc are not there's but an investors.
I would suspect they sold another 18-20 during May and produced maybe 8. So let's say a net -10 in May. Meaning they have 138 btc - 50 held as collateral and loaned against, so 88 total.
Gives them a 1:1 ratio for market cap and bitcoin held. They keep saying they have X amount of bitcoin, but always leave out they borrowed millions against those holdings and its being used as collateral.
Bottom line, this company is broke and liquidati g bitcoin at a rapid pace to pay their fat salaries and operating expenses.
With millions in warrants executable at $3, and a planned expansion of 2MW at the operating site to be completed by 9.30 - there will be massive dilution in the $3-$4 range.
Couple million will go to the expansion. The remaining $7M will go to operations and paying their salaries.
This stock tops out under $4 this year. And will be back at the $1 range after the warrant exercise and cash grab is completed.
Not looking good.
When they report May liquidations and mining results next week or so this will drop 30%.
Always does. Because it always disappoints!
💩
Penny Grabber
2 months ago
Carrying cost per btc on the annual report is 65k. If they minted 24 in q1 the cost to acquire them was 1.56M. Payroll, selling and general administrative costs, and professional fees were over 7M last year. Or roughly 600k per month on average.
1.56M in btc acquisition costs + 1.8M in payroll, fees, general etc is 3.36M cash burn q1. Basically their entire stock pile as of December 31.
They liquidated 14btc in March because cash is nearing zero to add 1.2M in cash to fund mining and salaries.
3.4M in cash december 31, less 3.36M in operating costs (easily) for btc mining and payroll etc is 0. Add in the btc selling of 14 in March gives you 1.2M as of April 1st.
Cash burn at mining about 2.25 btc a week times 65k is 145,000 or so, or 600k a month. Salaries etc are 600k a month. At this rate it is impossible to HODL because if they kept the btc they mined they would have $0 by the end of April. They would of had $0 at the end of March if they didn't sell 14 btc imo.
Not to mention payments on loans and every dollar of costs outside of these main items.
This company is in a very tough spot at these btc prices. A capital raise or loan of some some is imminent to avoid forced liquidation of btc holdings.
And since the btc drop, 62.5 btc is pledged on the loan they took out. After selling 14 in March, and pledging 5M worth (62.5 at current prices). They really only have about 90 to convert into cash at the moment.
In summary - they produce about half the btc they need to break even at current levels.
With such a small market cap they can't do a typical offering. So something is going to give really soon....
Looking bad..
Penny Grabber
4 months ago
Staff and payroll costs for 7-8 people for 9 months ending 9/30/24 was 3.7M
That's 41,111 - 58,700/month per employee.
That's roughly 5M a year for 7-8 employees operating a company with a market cap value of 7.5M. That doesn't include lofty bonuses paid in December.
If you average up and say they will mine 10 btc a month with the addition of the 15MW plant and enhanced software, at 90,000 a coin that's 10.8M/year.
Not including bonuses, payroll alone for 7-8 people is 5M a year. New top line revenue projections are 9M a year at current market prices. Payroll not including lofty bonuses is 46% of every dollar mined. Add in 1.6M through 9 months for "professional services" wages and 1099 costs, without adding a single dollar to professional fees for the last quarter, is 6.6M a year.
61.1% of projected TOP LINE revenue is for wages of 7-8 people and professional fees.
Last checked, and this could be wrong, but energy to mine a BTC was roughly 40,000 on a s19.
10 btc per month times 12 months is 120 btc. Times 40k energy costs = 4.8M
4.8M + 5M in wages + 1.6M in professional fees = 11.4M. Top line projections on the generous side 2025 are 10.8M.
Add in all other operating costs, another 7M in Depreciation expense on the miners, 2025 is looking like another massive loss for shareholders.
But the 7-8 people running it will still get their 5M a year.
This is why no one buys their stock. They are fleecing the company for every dollar internally with no indication of creating value or profits for shareholders both near and long term. With no plan or mention on how they would do it except more acquisitions. Which would require more capital. More dilution. More reverse splits, and more losses on top of the nearly 100M this group has burned through over the years to get to this point.
Not looking good. They are barely holding onto NasdaqCM requirements now as it is to stay listed as well while the stock sits at all time decade lows.
While the 8 employees living lavishly.
They keep reporting we have 15M in btc. But fail to mention 5M is collateral for debt and basically signed over all rights and "first in line" and to the assets to 1 private investor for the entire company if it fails.
Entire company is an insider job. Should not be public. Markets are just used to fleece the public.
Down 99.97% all time, and still listed.
Penny Grabber
4 months ago
Why sell 365 bitcoin miners for 79k when they are on the books for 1.3M?
In order to accommodate an expected incoming shipment of S21 mining machines in April 2024, management identified 365 mining machines at a Core hosting facility that would require relocation. As part of its impairment testing management considered the possible cashflows and probabilities associated with the relocation and continued use of 365 mining machines at a separate hosting facility location and the potential sale of such assets to a third-party. Based on the assessment performed, management concluded a sale was probable and an impairment of $1.2 million on the mining machines was recorded during the first quarter, which was calculated as the net carrying value of the 365 mining machines of $1.3 million less the expected sales price of $79 thousand. A loss was recorded on the Consolidated Statements of Operations as "Impairment loss on mining equipment" for the three and nine months ended September 30, 2024 of nil and $1.2 million, respectively.
On April 16, 2024, the 365 mining machines were sold to a third-party for $79 thousand. There was no additional loss recognized upon the asset sale
Penny Grabber
4 months ago
The Nasdaq Capital Market (Nasdaq-CM) is one of three listing tiers on the Nasdaq exchange, specifically for companies that need to raise capital.
Companies listed here may be small companies with a need to grow capital or shell corporations designed to raise capital in public markets for the purpose of acquiring other business entities.
Companies that don't qualify for the Nasdaq National Market trade on Nasdaq-CM.
Nasdaq Capital Market companies are required to meet a net income standard of at least $750,000, a minimum public float of 1,000,000 shares, at least 300 shareholders, and a share bid price of at least $4 (with certain exceptions).
All the standards share some requirements such as one million publicly held shares, 300 shareholders, and three market makers (MMs). However, these also differ in important ways. The equity standard requires stockholders' equity of $5 million, where the other two require only $4 million, and it also requires an operating history of two years, while the other two do not require an operating history.
The market value of listed securities requires a market value of listed securities of $50 million and a market value of publicly held shares of $15 million. The net income standard is the only one requiring a net income, $750,000 in the latest fiscal year or in two of the last three years, but has the lowest requirement for market value of publicly held shares at $5 million.
Penny Grabber
4 months ago
Funny Maxim is hosting LMFA in some type of investment opportunity tomorrow.
When in October 2021 they sold shares of lmfa for 4.75 a share. Split adjusted, less than 4 years later, those shares are now worth 30 cents.
The shares Maxim sold lost 94 cents on the dollar, down 94% during the biggest bull run for stocks in the history of mankind
In October 2021 BTC was 44k. If they took that 30M and invested it in BTC, they would of had 681 BTC and the value today would be 68.1M
Instead, they have 158 valued at 16M, mainly all collateral with debt, and a 9M enterprise market cap.
Ouch.
Penny Grabber
6 months ago
Name and Principal Position Year ($) ($) ($) ($) ($)(1) ($)
Bruce Rodgers
2023 $ 825,000 $ - $ 488,345 $ 356,503 $ 24,860 $ 1,694,708
Chairman, CEO and President
2022 $ 750,000 $ - $ - $ - $ 10,571 $ 760,571
Richard Russell
2023 $ 550,000 $ - $ 488,345 $ 356,503 $ 48,467 $ 1,443,315
Chief Financial Officer
2022 $ 500,000 $ - $ - $ - $ 32,559 $ 532,559
Ryan Duran 2023
$ 192,500 $ - $ 122,086 $ 89,126 $ 40,217 $ 443,929
Vice President of Operations
2022 $ 175,000 $ 75,000 $ - $ - $ 32,559 $ 282,559
(1) These amounts consist of health insurance premiums, dental & vision insurance premiums paid by the Company in excess of non-executive contribution and 401K Company match.
Penny Grabber
6 months ago
New shares structure roughly 6.8M shares.
Company has another 5.1M in cash. Plus the millions on the balance sheet, plus the 15M in bitcoin, the 15MW mining facility, and 6000 s19 and s21 miners.
When they are fully operational in January they should mine about 15 BTC a month. Or about 1.5M usd at current levels, 4.5M a quarter, 18M a year.
Mining costs are roughly half of the value. So 9M. Plus 5M in operations, salaries, etc.
2025 without any change in btc price should be about 4M before interest Depreciation and taxes etc.
About .80/share.
6.5m times 3 dollars a share = 19.5M market cap. Trading at 5x forward earnings (2025).
Penny Grabber
7 months ago
The registrant had 3,397,042 shares of Common Stock, par value $0.001 per share, outstanding as of November 13, 2024.
Times $2.65/share = $9,002,161 market cap.
I suspect it's now over 4M outstanding. This is based on the approval of the warrant exercising and the additional volume of trading last week.
If all warrants exercise, total shares outstanding will be just over 5M shares.
Penny Grabber
7 months ago
1 MW Container holds approximately 300 next generation BTC miners. A MW buildout can run 250,000-750,00 depending on equipment and contractors.
Equipped with approximately 300 S19 Pro miners – $2,850,000 - $3,250,000 (assuming $9500/miner, these prices change often)
Monthly managed OPEX cost – $34,560 (300 miners x .05 cents x 3.2kw x 24 hours x 30 days/month)
LMFA has the miners. Now has the 15MW operations (just have to swap out the current partners miners with their own once they vacate) it's safe to assume 3M times 15 = 45M facility which includes the miners.
I repeat.
$45,000,000
All miners paid in full. 15MW facility paid in full in January. The balance due is a fraction of cash and BTC on hand.
This is beyond dirt cheap.
500X the intrinsic value of BTCT. All smoke and mirrors over there. .0001/share inevitable with that one.