OLB Group Inc. (NASDAQ: OLB), a prominent player in the payment processing sector, is set to spin off its bitcoin mining subsidiary, DMint, to its shareholders. This strategic move involves issuing 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, operates a cryptocurrency mining facility that spans 15,000 square feet and is powered by TVA hydroelectric power, boasting power costs under $0.048/Kwh. This cost efficiency is 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 using 20 Megawatts (MW) of power. The subsidiary has received a third-party valuation of $29 million, indicating the potential for substantial value creation for OLB Group shareholders through this spinoff. The company has taken steps to prepare for this transition, including submitting a Confidential S1 filing, addressing preliminary SEC comments, and completing a separate subsidiary audit.
In addition to the DMint spinoff, OLB Group has expanded its portfolio through the acquisitions of Black Wireless and Mango Mobile. These acquisitions are part of OLB Group's strategy to tap into new revenue streams within the under-banked sector by leveraging the serial digital interface (SDI) network and offering a unified Point of Sales (POS) system. This system facilitates seamless product purchases and mobile phone minute reloads, further diversifying OLB Group's business model.
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 almost twice the current market price, positions OLB Group as a noteworthy entity for investors monitoring corporate developments and potential market appreciation. This move underscores the evolving landscape where traditional financial services and cryptocurrency operations converge, offering new opportunities for growth and value creation.
