LM Funding America, Inc. (NASDAQ: LMFA) had a notable rise in stock price when a strategic collaboration was announced. LMFA stock was on bullish trend with a rise of 20.71% to end the previous session at $4.78 as a consequence of a noticeable improvement in investor confidence.
Important Collaboration With Arthur Mining Inc.
LM Funding (LMFA) disclosed a strategic partnership with Arthur Mining Inc. to facilitate the construction of a new 15 MW hosting site close to Oklahoma City. In exchange for this cooperation, LM Funding has agreed to lend $2.5 million to a brand-new joint venture that is partly held by a third party and mostly controlled by Arthur Mining. The goal of this financial commitment is to get the 15 MW hosting site completed as soon as possible.
Hosting Agreement And Future Expansion Plans
As part of the strategic agreement, LM Funding has entered into a hosting contract with Arthur Mining for approximately 3,000 of the Company’s Bitmain Antminer S19j Pro machines. These machines are to be deployed at the new hosting site once construction is completed, which is anticipated by the end of June 2024. Additionally, Arthur Mining has agreed to host these machines at cost for approximately nine months, offering significant cost savings for LM Funding.
Furthermore, the building of a second 60 MW facility in Oklahoma City next to the existing 15 MW site is being investigated by LM Funding and Arthur Mining. This expansion would facilitate the cost-effective deployment of additional mining machines for the Company.
Long-Term Strategic Benefits
LM Funding is collaborating with Arthur Mining to advance the development of both the new 15 MW hosting site and the potential 60 MW site. These initiatives will provide LM Funding with cost-effective short- and long-term solutions for hosting its S19J Pro machines, thereby enabling the company to rapidly scale its cryptocurrency mining capabilities.
The partnership with Arthur Mining allows LM Funding to benefit from vertical integration while focusing on its core competencies without the operational or integration risks. By leveraging Arthur Mining’s deep hosting expertise and infrastructure, LM Funding is well-positioned to accelerate growth and enhance profitability.
