That's fair, but who is say it is? Btw I really appreciate this discussion. Only on nostr.
The new iOS updates makes me want to sell all of my Apple stock.
I guess we should all sell.
I understand the skepticism here. But we do have American market regulations, we aren't starting from scratch here. This isn't FTX/SBF. I think people that are spreading the "does saylor actually have the coin" is short book FUD.
The issue is more nuanced. This brings into question ETFs. Because it's the same concept. MSTR is backed by #bitcoin, and backed by a CEO that is a honey badger stacker. 😂
My parents were professional artists. When I was growing up I watched their careers get disrupted and dismantled by digitization of their respective crafts. They were at an age where it was very difficult for them to learn the new technology and couldn't make the transition. This had a formative impact on my outlook and career. I started as a musician and ended up teaching myself business by reading books and Berkshire Hathaway shareholders letters. Now I own three restaurants in NYC. I refuse to get disrupted, and watching how wall street and high finance is reacting to #bitcoin is very reminiscent of how my parents reacted. I also remember the 2008 financial crisis and how no one was held accountable for their misdeeds, crimes and mismanagement. This is why #bitcoin resonates with me and why I continue to stack every day. We are going to take the power back, price doesn't matter.
Or debilitating ego
But I thought it was going to stop at 100k? And then at the halving it turns into 50k? #bitcoin
Very nice chat between nostr:nprofile1qqsg2zqd8wkhpnxu6lm5c2dyfa2mhpwte57apjae2ldp6g2mmwf3ypqpz9mhxue69uhkummnw3ezuamfdejj7qgcwaehxw309ahx7um5wghxvmt59emkj73wvf5h5tcpr9mhxue69uhhyetvv9ujuumwdae8gtnnda3kjctv9urj9dyf and Tad Smith about what value, how things get valued, amd why someone would pay 6+ millions for a certificate that says you can put a banana on a wall with some tape and call it a piece of #art.. lol.
I liked that even the art guy wanted to talk about micro strategy. 😂
Amazing. First thing I notice in the 10k, is that they intend on selling the BTC for USD. Thoughts?
$LMFA Special situation #bitcoin company trading at a deep discount to NAV (BTC holdings/market cap ~140%)
(Book value per share ~$10)
(Current $lmfa price ~$2.7):
$LMFA LM Funding, a company that has been going all in on #Bitcoin & Mining since 2021 & is continuing to expand mining operations:
LMFA trades at a discount to Bitcoin holdings even when excluding cash and miners and has minimal debt relative to assets
LM Funding holds 140 Bitcoin on their balance sheet
worth ~ $12.8 Million (@ a btc price of $92k) w/ their avg cost of btc being ~$60k
Their market cap is ~ $9.10 Million (@ $lmfa price of $2.7)
They also have a few million dollars of cash and over $15M worth of miners
Total assets on balance sheet per last earnings report (Q3 2024)
~ 36M
Total liabilities ~ 8M
Current assets ~ 11M
Current liabilities ~ 3M
Not only is LMFA undervalued they are also expanding to larger, and more cost effective, energy sites for their current and future mining operations. They are using loans backed by btc to do this (non dilutive - this allows them to hold their btc) they are employing a hodl, mine and stack strategy.
LM Funding recently announced they are in the process of expanding operations (in addition to their existing 17.6MW sites):
LMFA, “a cryptocurrency mining and technology-based specialty finance company, is pleased to announce the signing of an asset purchase agreement to acquire the business assets of a 15 MW mining site in Oklahoma” w/ options to further increase output to 60 MW & they are also waiting regulatory approval for even further expansion at a site in Texas for 72 MW.
To put 15 MW into perspective this is enough energy to power 11,000-15,000 homes w/ the possibility of expanding to 60MW and 72MW in Texas - they currently run a 17.6MW site as they are in this expansion process. (The Oklahoma site and miners in transit should be fully operational by the end of Jan 2025)
LM funding additionally gets their miners at wholesale/competitive pricing and will be cutting their cost of energy to 3-5 cents per MW from 7-8 cents, this will help to adjust with the difficulty of mining post 2024 halving.
Something to keep in mind is that even if #bitcoin prices fall, $LMFA will be able to mine bitcoin at a faster pace because of less competition/ unprofitable miners going offline and the difficulty of mining going down with demand. In the other direction, $LMFA also benefits when bitcoin goes up because it holds 140 bitcoin on its balance sheet, it can fund more mining operations as its collateral grows & they can mine bitcoin. Win-Win scenario if you are assuming bitcoin is here to stay for the next several years/decades, which I think it will because it has established itself as the fastest growing asset class since its inception and now institutions are flowing in / nation states. Also people have a trillion dollar plus incentive now to keep the network running / secure & #bitcoin is flooded with very enthusiastic engineers / entrepreneurs.
Added bonus: In the highly unlikely scenario where bitcoin fails or mining becomes too difficult for lmfa maybe say post 2028 or 2032 halving, the CEO mentioned that they are strategically picking their new mining sites in locations where they can also capitalize on the AI boom if needed (AI also loves cheap energy). LMFA’s sites are in areas with high talent, the sites have cooling systems in place for GPUs and water systems…another win-win scenario
“Heads I win, tails I don’t lose much” -Mohnish Pabrai
Why is lmfa so cheap?
1. It used to be (mostly) a lending company to nonprofits such as HOA communities so many people in the market don’t know it’s #bitcoin business is a much bigger operation than its old yet still existent legacy business.
2. It’s a microcap stock (low mrkt cap) so these get a lot less buzz than mid/mega caps.
Conclusion: large upside with minimal downside, 40-70% discount to assets.
Value of btc per share alone ~ $3.8
Book value per share (btc+cash+ other assets - liabilities / shares outstanding) ~$10
Current price ~ $2.7
PS. ~60% insider ownership which means they have a big incentive to grow this company.
https://www.lmfunding.com/investors/news-events/press-releases
This is great research/ analysis. I'm going to dig in more. Thanks for your work! The funny thing is, I used to hold this thing in the last bull market and got burned. I'm willing to reevaluate because the situation has changed. Microcap + BTC company seems too good to be true. I'll report back if I find any red flags.
As an NYC resident I don't think I can. Frustrating. Is there a work around?
Been stacking hard. #bitcoin
But what does the BTC look like in dollar terms during that conversion/dilution? The beauty is that none of us know. Big balls required for this bet.
I think a common mistake is to consider it only as a single snap shot in time. If the price gets ahead of itself, does that mean it's time to sell? If nostr:npub15dqlghlewk84wz3pkqqvzl2w2w36f97g89ljds8x6c094nlu02vqjllm5m continues to run the playbook, I think it's worth it to hold.
The variables are price per BTC, rate of dilution vs rate of accumulation.
I'm ready for a #nostr phone or #bitcoin phone. I would dump my iPhone in a second if that was created. Maybe nostr:npub1sg6plzptd64u62a878hep2kev88swjh3tw00gjsfl8f237lmu63q0uf63m Bitkey ->phone. Does it need to run on new/independent network as well?
Can you guys stop buying, I'm trying to stack sats over here. #bitcoin