Why Cryptocurrency Mining Company LM Funding America Shares Are Down Today
Portfolio Pulse from Lekha Gupta
LM Funding America Inc (NASDAQ:LMFA) shares dropped approximately 12% following the announcement of an agreement to sell Symbiont's blockchain technology to Platonic Holdings Inc. for $2 million. The sale proceeds will be held in escrow until December 26, 2024. LMFA will acquire the assets of Symbiont.IO in its Chapter 11 bankruptcy case. The company plans to use the funds to expand its bitcoin mining operations and strengthen its balance sheet. LMFA reported a significant revenue increase in Q3, with over 1,720% growth year-over-year.
December 28, 2023 | 4:40 pm
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LM Funding America Inc's stock price declined by 12% after the company disclosed the sale of blockchain technology assets to Platonic Holdings Inc. for $2 million, which will be used to expand its bitcoin mining business and provide additional working capital.
The stock price decline is directly related to the news of the asset sale, which may have caused investor concern about the company's current financial health and the decision to sell valuable technology. However, the company's intention to use the proceeds to invest in its bitcoin mining business and strengthen its balance sheet could be seen as a positive move in the long term. The significant revenue growth reported for Q3 indicates potential for future growth, which may mitigate the short-term negative impact.
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