Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of LM Funding America (NASDAQ: LMFA) are gaining premarket on the news it is expanding and diversifying its business operations by launching a cryptocurrency mining business.
The technology-based finance firm that provides funding to nonprofit community associations has purchased 1,000 S19J Pro Miner Machines from Bitmain for $6.3 million.
The S19J is a high hash rate machine mining SHA-256 algorithm produced by Bitmain that generates a maximum hash rate of 100 TH/s and has a power consumption of 3,000 W.
The new mining business will be operated under a newly established subsidiary named US Digital Mining and Hosting Co, LLC. The company is establishing a data centre to host the machines, with delivery of the miners expected between the second and third quarters of 2022.
Mining operations will begin as soon as Q2 2022.
Bruce Rodgers, Chairman and CEO of LM Funding, said: “We believe that China’s exit from Bitcoin mining has created an opportunity for U.S. public companies like ours to enter Bitcoin mining to take advantage of our low cost of capital, reliable and affordable energy supply, and stable regulatory and corporate environment. We believe Bitcoin mining operations will provide opportunities to vertically integrate our operations in hosting, finance, and other areas of the Bitcoin ecosystem.”
The company's shares are up 12.53% premarket at $5.03, adding to its over 33% gains in 2021.
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