LM Funding signs asset purchase agreement to acquire assets of mining site

LM Funding (LMFA) America announced the signing of an asset purchase agreement to acquire the business assets of a 15 MW mining site in Oklahoma from Tech Infrastructure JV I, a joint venture majority-owned by Arthur Inc., for $7.3 million. The Company currently operates 10 MW of machines actively mining Bitcoin at this site. The acquisition includes most of the business assets of the JV, which includes air-cooled GIGA containers, transformers, and related infrastructure. Upon closing, LM Funding will pay approximately $1.1 million and apply previously extended loans to the JV, totaling approximately $3.7 million in accrued principal and interest, as a credit towards the purchase price. The remaining $2.5 million will be held in escrow to ensure the timely completion of this acquisition, including the exit of a third-party miner currently hosted by the JV. At the signing of the asset purchase agreement, the Company lent an additional $0.7 million to JV, which resulted in aggregate loans totaling $3.7 million by the Company to the JV. The facility and assets are being acquired by LM Funding for its own internal hosting needs and not for the purpose hosting third-party mining machines. rthur Inc. emphasized the strategic importance of the transaction, noting that the proceeds will be reinvested directly into its subsidiary growth strategy, focusing on the development of new mining sites and the expansion of its operational capacity. Not later than January 2025, LM Funding plans to vacate the third-party miner currently hosted at the site from 5 MW of Arthur Mining’s current hosting space, paving the way for the deployment of approximately 800 of LM Funding’s S21 and XP Bitmain machines and 640 S19J Pros. The escrow is expected to be paid not later than January 2025 once all third-party miners are removed from the site and certain other closing conditions are met