LM Funding America raises $23 million to expand Bitcoin

LM Funding America (NASDAQ: LMFA) has announced a significant capital raise to accelerate its Bitcoin treasury and mining strategy. The company secured approximately $23 million in combined gross proceeds through a registered direct offering and a private placement.

Here are the key details of the fundraising and LM Funding’s expansion plan:

Fundraising Details: The company raised $12.6 million from a registered direct offering and $10.4 million from a private placement, totaling approximately $23 million. The majority of the net proceeds will be used to acquire additional Bitcoin for its treasury.

Bitcoin Strategy: LM Funding’s business model, which it launched in 2021, combines Bitcoin mining with direct purchases to build its treasury holdings. This dual approach aims to accumulate Bitcoin in a disciplined way.

Mining Operations: The company’s mining operations are currently profitable on an operating income basis. These operations help to offset public company overhead and contribute to the company’s long-term Bitcoin accumulation strategy.

Acquisition and Expansion: LM Funding recently announced the acquisition of an 11-megawatt (MW) Bitcoin mining site in Columbus, Mississippi from Greenidge Generation. This purchase, funded from the company’s balance sheet, is expected to expand its low-cost mining capacity and enhance its vertically integrated approach. This acquisition is part of a larger plan to reach as much as 26 MW of owned mining capacity.

Vertical Integration: By owning and operating its own mining infrastructure, LM Funding aims to improve its cost control and resilience against the volatile nature of the hosting industry. This strategy has already contributed to an improvement in its direct mining margin.

Fundraising Details: The company raised $12.6 million from a registered direct offering and $10.4 million from a private placement, totaling approximately $23 million. The majority of the net proceeds will be used to acquire additional Bitcoin for its treasury.

Bitcoin Strategy: LM Funding’s business model, which it launched in 2021, combines Bitcoin mining with direct purchases to build its treasury holdings. This dual approach aims to accumulate Bitcoin in a disciplined way.

Mining Operations: The company’s mining operations are currently profitable on an operating income basis. These operations help to offset public company overhead and contribute to the company’s long-term Bitcoin accumulation strategy.

Acquisition and Expansion: LM Funding recently announced the acquisition of an 11-megawatt (MW) Bitcoin mining site in Columbus, Mississippi from Greenidge Generation. This purchase, funded from the company’s balance sheet, is expected to expand its low-cost mining capacity and enhance its vertically integrated approach. This acquisition is part of a larger plan to reach as much as 26 MW of owned mining capacity.