OLB Group Inc. (NASDAQ: OLB), a prominent payment processing company, has announced a strategic initiative to spin off its bitcoin mining subsidiary, DMint, to its shareholders. This decision is poised to distribute one share of DMint for each share of OLB Group held by shareholders on a forthcoming Shareholder of Record Date. DMint, located in Selmer, TN, specializes in low-energy-cost cryptocurrency mining, operating within a 15,000-square-foot facility powered by TVA hydroelectric power. The company boasts power costs under $0.048/Kwh, a significant advantage in the competitive cryptocurrency mining industry.
Currently, DMint operates 276 energy-efficient S19J Asics miners, with the infrastructure to support up to 5,000 miners utilizing 20 Megawatts (MW) of power. OLB Group has revealed that DMint has received a third-party valuation of $29 million, indicating that the spinoff could substantially benefit OLB shareholders by unlocking hidden value. The company has completed a Confidential S1 filing, addressed preliminary SEC comments, and finalized a separate subsidiary audit in preparation for the spinoff and the subsequent DMint stock dividend.
In addition to the DMint spinoff, OLB Group has recently expanded its portfolio through the acquisitions of Black Wireless and Mango Mobile. These strategic moves are designed to tap into new revenue streams within the under-banked sector, leveraging the serial digital interface (SDI) network to offer a unified Point of Sales (POS) system. This system facilitates seamless product purchases and mobile phone minute reloads, enhancing OLB Group's market position.
Despite generating approximately $30 million in annual revenue from its payments business, OLB Group's market capitalization stands at about $13.2 million as of March 7, 2024, valuing the company at 0.3 times sales. The impending DMint spinoff, potentially valued at nearly twice the current market price, underscores OLB Group's strategic positioning for future corporate developments and potential market appreciation. This move not only highlights the company's innovative approach to unlocking shareholder value but also its commitment to diversifying and strengthening its business model in the rapidly evolving digital economy.
