OLB Group (NASDAQ: OLB) Preparing for Strategic Spinoff Of DMint Subsidiary to OLB Shareholders

March 26, 2024 at 09:00 AM EDT

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By Faith Ashmore, Benzinga

OLB Group Inc. (NASDAQ: OLB) has announced plans to spin off 100% of DMint, its bitcoin mining subsidiary, to OLB Group shareholders at a soon-to-be-announced Shareholder of Record Date. OLB Group, a payment processing company, is known for its suite of products and merchant services catering to the needs of small and medium-sized enterprises (SMEs), as well as larger organizations. OLB Group's flagship product, OmniSoft (™), is a cloud-based e-commerce platform that enables businesses to easily establish an online commerce presence, manage and track their sales and accept and process payments securely.

The spinoff will give OLB shareholders one share of DMint for each share of OLB Group owned on the Shareholder of Record Date, which will be announced after the final SEC approval. OLB has already filed an S1 filing with the SEC for the spinoff and has answered initial SEC comments and completed stand-alone audits for DMint.

DMint, based in Selmer, TN, is a low-energy-cost cryptocurrency mining operation with a 15,000-square-foot facility on 4.7 acres, powered by TVA hydroelectric power. The company reports that power costs are under $0.048/Kwh. DMint currently has energy-efficient 276 S19J Asics miners up and running, with the facility having a total capacity of 5,000 miners utilizing 20 Megawatts (MW) of power.

DMint’s access to low power costs contributes to the “soon to be spun off” subsidiary's enterprise value. Bitcoin miners that survive the upcoming Bitcoin halving in April may include those entities with under $0.054 kwh power costs. DMint’s ability to deploy up to 5,000 mining machines with profitable metrics enhances its value.

The spinoff of DMint, which reportedly has a third-party valuation of $29 million, is expected to unlock significant value for OLB Group shareholders. A Confidential S1 has been filed, preliminary comments from the SEC have been answered and a separate subsidiary audit has been conducted in preparation for the upcoming spinoff and resulting DMint stock dividend to be distributed to OLB shareholders.

OLB Group’s recently announced strategic acquisitions of Black Wireless and Mango Mobile are promising initiatives geared to provide the company with new sources of revenue in a growing market sector. These acquisitions and strategic expansions are enabling the company to leverage the serial digital interface (SDI) network and offer one Point of Sales (POS) system to customers, so they can purchase products and reload mobile phone minutes seamlessly. OLB Group is in the process of rebranding these platforms and integrating them into the OLB Payment Platform and ECO Payment system, providing a new revenue source.

In addition to its comprehensive suite of products and services and recent expansion into the under-banked sector, OLB Group's spinoff of DMint demonstrates its dedication to building shareholder value.

With strategic acquisitions and a commitment to staying ahead of the technological curve, OLB Group is solidifying its position as a leader in its industry. Despite generating around $30 million in annual revenue from its payments business, OLB Group has a current market cap of only about $13.2 million (as of March 7, 2024). Given its current valuation at 0.3 times sales and a pending spinoff that may be valued at almost 2X the current price, OLB is a company to watch for future corporate developments and potential appreciation.

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