What is the story about?
What's Happening?
LM Funding America, Inc., a Bitcoin treasury and mining company, has completed the acquisition of an 11 MW Bitcoin mining facility in Columbus, Mississippi. The purchase, valued at $4 million, includes the site and approximately 7.5 MW or 157 PH/s of operational hashrate from around 2,300 Bitmain S19 series miners. This acquisition is part of LM Funding's strategy to buy smaller, undervalued power assets, diversifying their geographic footprint and reducing single-site risk. The site offers favorable power pricing at approximately $0.036/kWh, which is expected to lower the company's overall fleetwide average electricity price.
Why It's Important?
The acquisition enhances LM Funding America's capacity to mine Bitcoin, increasing its total owned capacity to 26 MW. This move is significant as it strengthens the company's position in the competitive cryptocurrency mining industry, potentially leading to increased profitability due to lower operational costs. The strategic location and favorable power pricing could provide LM Funding with a competitive edge, allowing for more efficient mining operations and better financial returns. This development also reflects the growing interest and investment in cryptocurrency mining within the U.S., highlighting the industry's expansion and the economic opportunities it presents.
What's Next?
LM Funding plans to optimize the remaining capacity at the Mississippi facility by deploying existing and additional cost-effective miners. The company aims to leverage firmware optimizations to improve margins, similar to strategies employed at their Oklahoma site. The acquisition was partially funded by a $1.3 million secured loan, with the remainder from existing liquid assets. LM Funding will continue to adhere to its disciplined capital allocation framework, potentially seeking further acquisitions to expand its mining operations.
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