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LM Funding America Announces Sale of Symbiont’s Blockchain Technology to Platonic Holdings Inc.

LM Funding America Announces Sale of Symbiont's Blockchain Technology to Platonic Holdings Inc.

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TL;DR

  • LM Funding America, Inc. has sold Symbiont’s blockchain technology to Platonic Holdings Inc. for $2 million, a strategic move aimed at strengthening its balance sheet and providing resources for expanding its bitcoin mining operations.
  • This sale is part of LM Funding’s preparation for the anticipated Bitcoin halving event in Q2 2024, signaling the company’s focus on growing its presence in the cryptocurrency mining sector.

LM Funding America, Inc. (NASDAQ: LMFA), a cryptocurrency mining and technology-based specialty finance company, has made a significant move in the blockchain industry by selling Symbiont’s blockchain technology to Platonic Holdings Inc. for $2 million. 

The strategic sale is set to strengthen LM Funding’s balance sheet and provide additional resources for the company’s expansion, particularly in the bitcoin mining sector, in anticipation of the expected Bitcoin halving event in Q2 2024.

Details of the sale and plans

The agreement with Platonic Holdings Inc. involves a sale price of $2 million, with $200,000 of the amount to be held in escrow until December 26, 2024. The transaction comes after LM Funding acquired the assets of Symbiont.IO during its Chapter 11 bankruptcy case, with the assets recorded on LM Funding’s books for the same amount.

Bruce M. Rodgers, Chairman and CEO of LM Funding, expressed that the sale provides necessary funds to grow the company’s bitcoin mining business. It includes acquiring more mining equipment in preparation for the anticipated Bitcoin halving event in the second quarter of 2024. The transaction also offers additional working capital to fortify LM Funding’s balance sheet, positioning the company for further growth and stability in the dynamic cryptocurrency market.

LM Funding America, Inc., commenced its Bitcoin mining operations in September 2022, marking its entry into the rapidly growing cryptocurrency mining business. Alongside its mining activities, LM Funding operates as a technology-based specialty finance company. The dual focus allows the company to provide funding to nonprofit community associations in various states, including Florida, Washington, Colorado, and Illinois. The company’s unique business model involves funding a portion of the associations’ rights to delinquent accounts, arising from unpaid association assessments.

Forward-looking statements and market risks

In line with the Private Securities Litigation Reform Act of 1995, LM Funding’s announcement contains forward-looking statements. These statements, which include plans and projections about the company’s future operations and market position, are subject to various risks and uncertainties.

LM Funding America, Inc. has outlined several risks associated with its business operations in its most recent Annual Report on Form 10-K, along with other filings submitted to the SEC. These documents provide a detailed overview of the potential challenges the company faces, particularly in the volatile era of cryptocurrency mining.

The risks highlighted include the inherent complexities of operating within the cryptocurrency sector, which is known for its rapid changes and unpredictability. Additionally, the impact of the ongoing COVID-19 pandemic poses another layer of uncertainty, affecting global markets and business operations in unforeseen ways. Furthermore, the company is cognizant of the fluctuations in credit and capital markets, which can significantly influence its financial stability and operational capabilities.

Conclusion

The sale of Symbiont’s blockchain technology by LM Funding America to Platonic Holdings Inc. represents a strategic maneuver in the blockchain and cryptocurrency sector. The move not only strengthens LM Funding’s financial position but also aligns with its goal to expand its bitcoin mining operations. As the company prepares for the upcoming Bitcoin halving event and navigates the complexities of the cryptocurrency market, the sale marks a significant step in its journey towards growth and innovation in the blockchain industry.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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