LM Funding Closes Acquisition of 15MW Mining Site
Deal News | Dec 09, 2024 | Globenewswire
In a strategic move to enhance its cryptocurrency mining operations, LM Funding America, Inc., a technology-based specialty finance company, has acquired the business assets of a 15MW mining site in Oklahoma from Tech Infrastructure JV I LLC. This acquisition, valued at $7.3 million, includes a potential expansion to 60MW, supporting LM Funding's transition to a vertically integrated mining model. The transaction was facilitated by converting initial loans and interest of $3.8 million to the purchase price, alongside a $1 million cash payment. Furthermore, an additional $2.5 million was escrowed to ensure compliance with the agreement terms, including the January 2025 exit of a third-party miner. The move is expected to utilize the site's full potential with power costs of $0.04/kwh, aiming to improve operational efficiency and mining capabilities. LM Funding plans to use funds from a recent $5.1 million warrant exercise to enhance the site with more efficient miners and pursue other acquisition opportunities, projecting a combined mining capacity of 562 petahash by Q1 2025. In addition to its mining operations, LM Funding continues its specialty finance services, offering financial solutions to nonprofit community associations across several U.S. states.
Sectors
- Cryptocurrency Mining
- Financial Services
- Technology
Geography
- United States – The article primarily discusses operations within the United States, including Oklahoma, where the mining site is located, and Florida, where LM Funding is based.
- Oklahoma – The specific location of the acquired mining site, highlighting its geographical relevance.
- Florida – The headquarters of LM Funding America, Inc., which underscores its strategic and operational base.
Industry
- Cryptocurrency Mining – The acquisition is directly related to cryptocurrency mining, as the 15MW site will enhance LM Funding's mining operations.
- Financial Services – LM Funding is a specialty finance company providing services to nonprofit community associations, tying into the broader financial services industry.
- Technology – The involvement in technology-based solutions for mining operations and financial services also places this within the technology sector.
Financials
- 7.3 million – Total purchase price of the 15MW mining site acquisition.
- 3.8 million – Initial loans and accrued interest applied to the purchase price.
- 1 million – Cash paid at closing for the acquisition of the mining site.
- 2.5 million – Amount escrowed to ensure continuing obligations under the purchase agreement.
- 5.1 million – Funds from a warrant exercise to purchase efficient miners and acquire other sites.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| LM Funding America, Inc. | Buyer | Company | A cryptocurrency mining and technology-based specialty finance company. |
| Tech Infrastructure JV I LLC | Vendor | Company | A joint venture majority-owned by Arthur Inc. that sold the mining site to LM Funding. |
| Arthur Inc. | Owner of Vendor JV | Company | Majority owner of Tech Infrastructure JV I LLC. |
| Bruce M. Rodgers | Chairman and CEO | Person | Chairman and CEO of LM Funding America, Inc. |
| Ryan Duran | President, US Digital Mining & Hosting Co. | Person | President of LM Funding’s US Digital Mining & Hosting Co. subsidiary. |
| Richard Russell | CFO | Person | CFO of LM Funding America, Inc. |