By william White (Fri, October 15, 2021)
NASDAQ:LMFA) stock is rising higher on Friday despite a lack of news concerning the company.© Provided by InvestorPlace a crypto mining rig representing LMFA stock.
Meme traders love LMFA stock and their influence is likely helping shares rise higher today. The stock is seeing heavy trading with some 54 million shares changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is only around 906,000 shares.
While it’s true that LMFA stock is a favorite of meme traders, it’s not just their actions pushing it higher today. We’ve also got to take into account the rising price of Bitcoin (CCC:BTC-USD), which the company has plans to start mining next year through its new subsidiary, US Digital Mining and Hosting.
Bitcoin has been doing well lately with the price of the digital tokens steadily climbing higher. That continues today with a major spike in value that has the crypto trading above $61,400 per token. This has it incredibly close to breaking its all-time high of $64,863.10.
Of course, traders will want to be careful about investing in LMFA stock. First off, the company is firmly in the penny range with shares trading at arounf $4.70 each and a market cap of $25.459 million.
Then you have to factor in its status as a crypto mining play. While crypto is on the rise now, we saw a major drop earlier this year that sent BTC down to about $30,000 per token. If something similar happens again, it could pull down crypto mining stocks at the same time.
LMFA stock was up 37.9% as of Friday afternoon.
Why Meme Stock and Bitcoin Mining Play LM Funding America (LMFA) Is Flying Today (msn.com)