TAMPA,
Fla., June 27, 2022 /PRNewswire/ -- LM
Funding America, Inc. (NASDAQ: LMFA) ("LM Funding" or
"LMFA") today announced that it has entered into a hosting and
services agreement with a multi-state data hosting company to host
up to 4,200 of LMFA's S19J Pro Antminer Machines (S19J) (100 TH/s)
("Bitmain Miner Machines"). The Bitmain S19J Pro Antminer
Machine is a high efficiency, high hash rate machine for Secure
Hashing Algorithm (SHA) 256 mining that generates an average hash
rate of 100 TH/s and has an average power consumption 3,000
kWh. LMFA anticipates that once all 4,200 machines are
operational at the new facility, LMFA will have a total capacity of
approximately 420 petahash capable of generating approximately 53
Bitcoin per month based on difficulty rates.1 LMFA
expects all of its 5,000 newly purchased miners, including 800
miners not being hosted by the new vendor, will be operational by
the fourth quarter of 2022, potentially generating a total of 504
petahash.
Multi-State Data Hosting Company Capacity
of 504 Petahash capable of generating approximately 764 Bitcoins
per year
Bruce M. Rodgers, Chairman and
CEO of LM Funding, commented, "We understand that our machine
suppliers' supply chain issues have been largely resolved based on
the information available to us, and we currently anticipate our
mining operations will commence in the third quarter. As a result,
we anticipate having approximately 5,000 mining machines
operational in the fourth quarter of 2022, currently expected to be
capable of generating approximately 764 Bitcoins per year. We
also plan to take advantage of the current disruptions in the
market by seeking to purchase miners at attractive valuations while
hosting the machines where we can find the most economical power
and quality service."
The new agreement is for 60 months and includes full hosting and
management services.
1 Future changes in the network-wide mining
difficulty rate or Bitcoin hash rate may also materially affect the
future performance of LMFA's production of bitcoin. Additionally,
all discussions of financial metrics assume mining difficulty rates
as of June 17, 2022. The total
network's hash rate data is calculated from a third-party source,
which is available here:
https://www.blockchain.com/charts/hash-rate. Data from
third-party sources has not been independently verified. See
"Forward-Looking Statements" below.
About LM Funding
America:
LM Funding America, Inc., together with its subsidiaries, is a
technology-based specialty finance company that provides funding to
nonprofit community associations (Associations) primarily located
in the state of Florida, as well
as in the states of Washington,
Colorado and Illinois, by funding a certain portion of the
associations' rights to delinquent accounts that are selected by
the Associations arising from unpaid Association assessments. LMFA
is also entering the cryptocurrency mining business through a new
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 signify forward-looking statements.
Forward-looking statements are not guaranties 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, uncertainty 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 power at reasonable prices, the
ability to finance our planned cryptocurrency mining operations,
our ability to acquire new accounts in our specialty finance
business at appropriate prices, the need for capital, our ability
to hire and retain new employees, changes in governmental
regulations that affect our ability to collected sufficient amounts
on 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 material adverse effect on our
business, financial condition, and results of operations.
Contact:
Crescendo Communications, LLC
Tel: (212) 671-1021
Email: LMFA@crescendo-ir.com
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SOURCE LM Funding America, Inc.