LM Funding America, Inc. Provides Quarterly Operational and Bitcoin Mining Update for Three Months Ended December 31, 2023

Rhea-AI Summary

LM Funding America, Inc. (LMFA) reports an increase in Bitcoin holdings to 95.1 BTC valued at $4.0 million at year-end. The company provided a preliminary, unaudited Bitcoin mining update for the three and twelve months ended December 31, 2023, showing steady progress in Bitcoin mining operations and strategic reinvestment of proceeds from Bitcoin sales.

Financial Analyst

The disclosed increase in Bitcoin holdings by LM Funding America, Inc. to 95.1 BTC, valued at approximately $4.0 million, represents a strategic asset accumulation amidst a dynamic cryptocurrency market. Analyzing this from a financial perspective, the company's decision to retain a significant portion of the mined Bitcoin rather than selling it could be indicative of a bullish stance on the future valuation of Bitcoin. This approach aligns with the anticipation of the 'Bitcoin halving event,' which historically has led to an increase in Bitcoin's price due to reduced supply.

However, the cryptocurrency market is known for its volatility and such investments carry inherent risks. The company's financial health could be impacted by adverse movements in Bitcoin's price. Investors should note that the value of the company's Bitcoin holdings is subject to market fluctuations and can significantly affect the company's balance sheet and stock price. The strategy of reinvesting proceeds from Bitcoin sales into the business suggests a focus on long-term growth, but it also emphasizes the need for a robust risk management framework to mitigate potential market downturns.

Market Research Analyst

From a market perspective, LM Funding America's update indicates an expansion in their cryptocurrency mining operations, as evidenced by the increased deployed hash rate from 363 PH/s to 615 PH/s over the year. This growth in operational capacity may position the company favorably within the competitive landscape of cryptocurrency mining, especially as the industry approaches the Bitcoin halving event. The halving could lead to reduced profitability for miners due to the reward cut, making operational efficiency and scale critical factors for success.

Market participants may interpret this update as a positive signal, potentially driving investor interest in the company. The update also provides a glimpse into the company's operational performance and strategic direction, which are crucial for investors assessing the company's potential for sustainable growth in a rapidly evolving industry.

Cryptocurrency Expert

Analyzing the technical aspects of LM Funding's operations, the increase in miners deployed and the stable hash rate throughout the last two quarters suggest a consolidation phase in their mining capabilities. The Bitcoin halving event mentioned by the CEO is a critical industry-specific term referring to the reduction in the block reward given to Bitcoin miners, which occurs approximately every four years. This event tends to have a profound impact on the mining industry, as it effectively doubles the resource cost of mining each Bitcoin, assuming constant prices and operational costs.

The company's preparation for this event, by retaining a larger Bitcoin reserve, could be a strategic move to hedge against the expected decrease in mining revenue post-halving. This strategy could benefit the company if the price of Bitcoin appreciates post-halving, as has been the trend in past cycles. Nonetheless, the reliance on such cyclical events introduces a layer of speculative risk and the company's performance is closely tied to the unpredictable nature of cryptocurrency markets.

Reports Increase in Bitcoin Holdings to 95.1 BTC valued at $4.0 Million at Year End

TAMPA, FL, Jan. 18, 2024 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ:LMFA) (“LM Funding” or the “Company”), a cryptocurrency mining and technology-based specialty finance company, today provided a preliminary, unaudited Bitcoin mining update for the three and twelve months ended December 31, 2023.

Metrics *	Three Months March 31, 2023	Three Months June 30, 2023	Three Months September 30, 2023	Three Months December 31, 2023	Twelve Months December 31, 2023
Bitcoin Mined	91.7	106.6	117.1	108.0	423.4
Bitcoin Sold	(64.9)	(111.0)	(106.1)	(103.0)	(385.0)
Bitcoin Purchased	2.0	-	-	-	2.0
Fees	(0.1)	(0.1)	-	-	(0.2)
Bitcoin Holdings	83.6	79.1	90.1	95.1	95.1
Approximate Miners Deployed at Quarter End	3,700	5,230	5,950	5,950
Approximate Deployed Hash Rate at Quarter End (PH/s)	363	543	615	615

*Unaudited

Bruce M. Rodgers, Chairman and CEO of LM Funding, stated, "We continue to make steady progress in our Bitcoin mining operations. In the fourth quarter alone, we mined 108.0 Bitcoin. Over the same time period, the Company sold 103.0 Bitcoin, generating approximately $3.4 million in proceeds. We continue to strategically reinvest the proceeds of our Bitcoin sales back into the business as we position the Company for the upcoming Bitcoin halving event anticipated to occur during the first half of 2024."

The Company estimates the value of its 95.1 Bitcoin holdings were approximately $4.0 million as of December 31, 2023.

About LM Funding America
LM Funding America, Inc. (Nasdaq: LMFA), together with its subsidiaries, is a cryptocurrency mining business that commenced Bitcoin mining operations in September 2022. The Company also operates a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois, by funding a certain portion of the Associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments.

Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guaranties of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company's most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, uncertainty created by the risks of entering into and operating in the cryptocurrency mining business, uncertainty in the cryptocurrency mining business in general, problems with hosting vendors in the mining business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, the ability to finance and grow our cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, the potential need for additional capital in the future, changes in governmental regulations that affect our ability to collected sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry.  The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.

Contact:
Crescendo Communications, LLC
Tel: (212) 671-1021
Email: LMFA@crescendo-ir.com

How many Bitcoin did LMFA mine in the fourth quarter of 2023?

LMFA mined 108.0 Bitcoin in the fourth quarter of 2023.

How much did LMFA generate from the sale of Bitcoin in the fourth quarter of 2023?

LMFA generated approximately $3.4 million in proceeds from the sale of 103.0 Bitcoin in the fourth quarter of 2023.

What is the value of LMFA's Bitcoin holdings as of December 31, 2023?

The value of LMFA's 95.1 Bitcoin holdings was approximately $4.0 million as of December 31, 2023.

What event is LMFA anticipating in the first half of 2024?

LMFA is anticipating the upcoming Bitcoin halving event in the first half of 2024.