LM Funding America, Inc. Reports First Quarter 2025 Financial Results
- Bitcoin mining revenue increased 25.3% sequentially to $2.3 million
- Mining margin improved to 38.5% from 31.2% in Q4 2024
- Generated $150,000 in curtailment and energy sales, offsetting mining costs
- Operating expenses reduced by 7.7% year-over-year to $2.0 million
- Bitcoin holdings of 148.7 BTC valued at $15.5 million as of May 13, 2025
- Total revenue declined 48.9% year-over-year
- Bitcoin mining revenue down 50.1% year-over-year
- Net loss of $5.4 million for the quarter
- $1.8 million Bitcoin non-cash write down impacted earnings
- Core EBITDA loss of $2.8 million
Insights
LMFA reports mixed Q1 results: Bitcoin mining up 25.3% sequentially but faces 48.9% YoY revenue decline amid market challenges.
LMFA's Q1 2025 performance reflects both operational improvements and market challenges in the Bitcoin mining space. The company mined 24.3 Bitcoin (up 12.5% sequentially) generating mining revenue of
The company's mining margin improved to
However, financial challenges remain evident. The company reported a net loss of
LMFA held 160.2 Bitcoin valued at
- Mined 24.3 Bitcoin for total mining revenue of
- Operating expenses excluding direct mining costs and depreciation down
- Held 148.7 Bitcoin on April 30, 2025 valued at approximately
TAMPA, Fla., May 15, 2025 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a Bitcoin mining and technology-based specialty finance company, today reported financial results for the three months ended March 31, 2025.
Q1’25 Financial Highlights
- Total revenue for the quarter was
$2.4 million dollars, up19.4% sequentially over Q4 2024 and down48.9% year-over-year. Bitcoin mining revenue accounted for approximately$2.3 million , reflecting a25.3% sequential increase and a50.1% decline year-over-year. The Company mined 24.3 Bitcoins during the quarter, up12.5% sequentially, at an average price of approximately$93,500. T he sequential growth was driven by improved operational efficiency from vertical integration and the LuxOS firmware upgrade. The year-over-year decline was primarily due to the April 2024 halving, lower average hash rate and lower uptime from curtailment. - The Company generated approximately
$150,000 in curtailment and energy sales for the quarter. These proceeds were an offset to digital mining costs, improving operational efficiency and contributing to the Company's margin improvements. - Mining margin improved to
38.5% , compared with31.2% in the fourth quarter 2024, driven by the power sales offsetting power costs, increased operational efficiency from the Company’s vertical integration strategy and LuxOS firmware upgrades. - Reduced certain operating expenses, including staff costs & payroll, professional fees, SG&A and other operating costs, by
7.7% year-over-year to$2.0 million . - Net loss for the quarter was
$5.4 million and Core EBITDA1 loss was$2.8 million , both driven by$1.8 million Bitcoin non-cash write down for fair market value of Bitcoin on the balance sheet as of March 31, 2025 and reduced revenue due to a portion of the Company’s machines nonoperational during the quarter. - Cash was approximately
$1.0 million and Bitcoin holdings totaled 160.2 Bitcoin, valued at$13.2 million based on Bitcoin price of approximately$82,600 , as of March 31, 2025. - Net book value of LM Funding stockholders’ equity was approximately
$31.7 million , or$6.18 per share2, as of March 31, 2025. - As of April 30, 2025, the Company held 148.7 Bitcoin, valued at approximately
$15.5 million , or$3.01 per share2, based on a Bitcoin price of$104,000 as of May 13, 2025.
Q1’25 and Recent Operational Highlights
- Power grid integration strategy: In the first quarter, the Company generated
$150,000 in curtailment and energy sales by selling power back to the grid during peak demand periods. This amount was applied as a reduction to digital mining cost of revenue, contributing in part to the improvement in mining margins from31.2% in the fourth quarter 2024 to38.5% in the first quarter 2025. The initiative continued to gain momentum, with April 2025 curtailment and energy sales reaching approximately$115,000. T his approach allows the Company to maximize the value of its power sites and create a partial hedge against Bitcoin price volatility. - Hosting site machine relocation: The Company is in the process of relocating its 800 Bitcoin mining Bitmain S19 XP and S21 machines from a third-party hosting partner to its wholly owned Oklahoma mining facility. This move will provide the company with greater operational control and access to more favorable power rates.
- Oklahoma 2 MW expansion: The Company is expanding its Oklahoma Bitcoin mining facility with an additional 2 MW of capacity utilizing immersion cooling technology, with construction and energization anticipated to be completed by the end of the third quarter of 2025. This technology enables operations in crowded and harsh environments with access to lower-cost power, while reducing dust, heat, and humidity - supporting more consistent performance, longer equipment lifespan, and improved reliability.
Management Commentary
"Our first quarter results demonstrate our progress to build a more resilient and efficient Bitcoin mining operation, with our LuxOS firmware upgrade and power sales initiative driving direct improvements to our bottom line,” commented Bruce Rodgers, Chairman and CEO of LM Funding. “We’re also moving forward with our planned 2 MW expansion at our Oklahoma site, leveraging immersion cooling technology to enhance efficiency and extend the lifespan of our mining equipment. Beyond that, we're actively pursuing overlooked power sites in the 5 to 20 MW range, while continuing to scale our ability to sell power back to the grid — a program that gained strong momentum, with April’s power sales nearly equaling our first quarter total."
Richard Russell, CFO of LM Funding, added, "The financial controls and strategic initiatives we've implemented are delivering tangible results. Bitcoin production increased by
Rodgers concluded, “We began our Bitcoin treasury strategy in 2021, and we actively manage our treasury to own as much Bitcoin as possible. Given the recent headlines from other forward-thinking companies, we are exploring potential partnerships and strategic relations to further expand our Bitcoin holdings. We remain bullish on our treasury strategy as we believe it is creating long-term value, particularly given that our Bitcoin holdings are valued at more than 1.5 times our market capitalization.”
Investor Conference Call
LM Funding will host a conference call today, May 15, 2025, at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2025, as well as the Company’s corporate progress and other developments. A copy of this earnings release and investor presentation are available on the Company’s Investor Relations website at https://www.lmfunding.com/investors.
Conference Call Details
- Date: May 15, 2025
- Time: 8:00 AM EST
- Participant Call Links:
About LM Funding America
LM Funding America, Inc. (Nasdaq: LMFA), operates as a Bitcoin mining and specialty finance company. The company was founded in 2008 and is based in Tampa, Florida. For more information, please visit https://www.lmfunding.com.
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 guarantees 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, the risks of operating in the cryptocurrency mining business, our limited operating history in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, our ability to identify and acquire additional mining sites, the ability to finance our site acquisitions and cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, 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.
For investor and media inquiries, please contact:
Investor Relations
Orange Group
Yujia Zhai
lmfundingIR@orangegroupadvisors.com
| LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets | |||||||
| March 31, | December 31, | ||||||
| 2025 (unaudited) | 2024 | ||||||
| Assets | |||||||
| Cash | $ | 1,028,870 | $ | 3,378,152 | |||
| Digital assets - current (Note 2) | 8,231,963 | 9,021,927 | |||||
| Finance receivables | 21,910 | 21,051 | |||||
| Marketable securities (Note 5) | 18,340 | 27,050 | |||||
| Receivable from sale of Symbiont assets (Note 5) | - | 200,000 | |||||
| Prepaid expenses and other assets | 899,036 | 827,237 | |||||
| Income tax receivable | 31,187 | 31,187 | |||||
| Current assets | 10,231,306 | 13,506,604 | |||||
| Fixed assets, net (Note 3) | 16,377,635 | 18,376,948 | |||||
| Intangible assets, net (Note 3) | 5,423,985 | 5,478,958 | |||||
| Deposits on mining equipment (Note 4) | 947,348 | 467,172 | |||||
| Long-term investments - equity securities (Note 5) | 7,251 | 4,255 | |||||
| Investment in Seastar Medical Holding Corporation (Note 5) | 171,810 | 200,790 | |||||
| Digital assets - long-term (Note 2) | 5,000,000 | 5,000,000 | |||||
| Right of use assets (Note 7) | 888,049 | 938,641 | |||||
| Other assets | 73,857 | 73,857 | |||||
| Long-term assets | 28,889,935 | 30,540,621 | |||||
| Total assets | $ | 39,121,241 | $ | 44,047,225 | |||
| Liabilities and stockholders' equity | |||||||
| Accounts payable and accrued expenses | 1,359,891 | 989,563 | |||||
| Note payable - short-term (Note 6) | 361,547 | 386,312 | |||||
| Due to related parties (Note 9) | 37,312 | 15,944 | |||||
| Current portion of lease liability (Note 7) | 188,763 | 170,967 | |||||
| Total current liabilities | 1,947,513 | 1,562,786 | |||||
| Note payable - long-term (Note 6) | 6,386,609 | 6,365,345 | |||||
| Lease liability - net of current portion (Note 7) | 748,054 | 776,535 | |||||
| Long-term liabilities | 7,134,663 | 7,141,880 | |||||
| Total liabilities | 9,082,176 | 8,704,666 | |||||
| Stockholders' equity (Note 8) | |||||||
| Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of March 31, 2025 and December 31, 2024 | - | - | |||||
| Common stock, par value $.001; 350,000,000 shares authorized; 5,133,412 shares issued and outstanding as of March 31, 2025 and December 31, 2024 | 4,602 | 4,602 | |||||
| Additional paid-in capital | 102,789,990 | 102,685,470 | |||||
| Accumulated deficit | (71,061,405 | ) | (65,662,731 | ) | |||
| Total LM Funding America stockholders' equity | 31,733,187 | 37,027,341 | |||||
| Non-controlling interest | (1,694,122 | ) | (1,684,782 | ) | |||
| Total stockholders' equity | 30,039,065 | 35,342,559 | |||||
| Total liabilities and stockholders' equity | $ | 39,121,241 | $ | 44,047,225 | |||
| LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations | |||||||
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenues: | |||||||
| Digital mining revenues | $ | 2,273,940 | $ | 4,597,908 | |||
| Specialty finance revenue | 67,389 | 116,628 | |||||
| Rental revenue | 30,008 | 33,068 | |||||
| Total revenues | 2,371,337 | 4,747,604 | |||||
| Operating costs and expenses: | |||||||
| Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 1,548,295 | 2,654,946 | |||||
| Curtailment and energy sales | (149,686 | ) | - | ||||
| Staff costs and payroll | 1,050,477 | 1,243,026 | |||||
| Depreciation and amortization | 2,037,578 | 1,976,196 | |||||
| Loss (gain) on fair value of Bitcoin, net | 1,809,976 | (4,257,515 | ) | ||||
| Impairment loss on mining equipment | - | 1,188,058 | |||||
| Professional fees | 364,485 | 509,893 | |||||
| Selling, general and administrative | 309,964 | 177,906 | |||||
| Real estate management and disposal | 36,314 | 27,189 | |||||
| Collection costs | 17,352 | 926 | |||||
| Settlement costs with associations | 3,693 | - | |||||
| Loss on disposal of assets | 186,781 | 8,170 | |||||
| Other operating costs | 255,948 | 214,505 | |||||
| Total operating costs and expenses | 7,471,177 | 3,743,300 | |||||
| Operating income (loss) | (5,099,840 | ) | 1,004,304 | ||||
| Unrealized loss on marketable securities | (8,710 | ) | (2,160 | ) | |||
| Unrealized gain (loss) on investment and equity securities | (25,984 | ) | 1,350,979 | ||||
| Gain (loss) on fair value of purchased Bitcoin, net | (52,704 | ) | 57,926 | ||||
| Other income - coupon sales | - | 4,490 | |||||
| Interest expense | (220,906 | ) | (70,826 | ) | |||
| Interest income | 1,145 | 9,125 | |||||
| Income (loss) before income taxes | (5,406,999 | ) | 2,353,838 | ||||
| Income tax expense | - | - | |||||
| Net income (loss) | $ | (5,406,999 | ) | $ | 2,353,838 | ||
| Less: loss (gain) attributable to non-controlling interest | 8,325 | (414,221 | ) | ||||
| Net income (loss) attributable to LM Funding America Inc. | $ | (5,398,674 | ) | $ | 1,939,617 | ||
| Basic income (loss) per common share (Note 1) | $ | (1.05 | ) | $ | 0.80 | ||
| Diluted income (loss) per common share (Note 1) | $ | (1.05 | ) | $ | 0.80 | ||
| Weighted average number of common shares outstanding | |||||||
| Basic | 5,133,412 | 2,428,203 | |||||
| Diluted | 5,133,412 | 2,428,203 | |||||
| LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Cash Flows | |||||||
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income (loss) | $ | (5,406,999 | ) | $ | 2,353,838 | ||
| Adjustments to reconcile net income (loss) to net cash used in operating activities | |||||||
| Depreciation and amortization | 2,037,578 | 1,976,196 | |||||
| Noncash lease expense | 50,592 | 26,043 | |||||
| Amortization of debt issue costs | 21,264 | - | |||||
| Stock compensation | - | 71,047 | |||||
| Stock option expense | 110,805 | 110,804 | |||||
| Accrued investment income | - | (8,568 | ) | ||||
| Accrued interest expense on finance lease | 14,710 | - | |||||
| Digital assets other income | - | (4,490 | ) | ||||
| Loss (gain) on fair value of Bitcoin, net | 1,862,680 | (4,315,441 | ) | ||||
| Impairment loss on mining machines | - | 1,188,058 | |||||
| Unrealized loss on marketable securities | 8,710 | 2,160 | |||||
| Unrealized loss (gain) on investment and equity securities | 25,984 | (1,350,979 | ) | ||||
| Loss on disposal of fixed assets | 186,781 | 8,170 | |||||
| Change in operating assets and liabilities: | |||||||
| Prepaid expenses and other assets | 96,526 | 1,583,843 | |||||
| Repayments to related party | 21,368 | 32,445 | |||||
| Accounts payable and accrued expenses | 370,328 | (22,003 | ) | ||||
| Mining of digital assets | (2,273,940 | ) | (4,597,908 | ) | |||
| Lease liability payments | (25,395 | ) | (25,863 | ) | |||
| Net cash used in operating activities | (2,899,008 | ) | (2,972,648 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Net collections of finance receivables - original product | 458 | (8,238 | ) | ||||
| Net collections of finance receivables - special product | (1,317 | ) | - | ||||
| Capital expenditures | (170,073 | ) | - | ||||
| Collection of note receivable | 200,000 | 1,449,066 | |||||
| Investment in digital assets - tether | (31,420 | ) | - | ||||
| Proceeds from sale of Bitcoin | 1,204,680 | 1,296,233 | |||||
| Proceeds from the sale of tether | 27,964 | - | |||||
| Deposits for mining equipment | (480,176 | ) | (1,096,961 | ) | |||
| Distribution to members | (1,015 | ) | - | ||||
| Net cash provided by investing activities | 749,101 | 1,640,100 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Insurance financing repayments | (193,090 | ) | (241,917 | ) | |||
| Issuance costs | (6,285 | ) | - | ||||
| Net cash used in financing activities | (199,375 | ) | (241,917 | ) | |||
| NET DECREASE IN CASH | (2,349,282 | ) | (1,574,465 | ) | |||
| CASH - BEGINNING OF PERIOD | 3,378,152 | 2,401,831 | |||||
| CASH - END OF PERIOD | $ | 1,028,870 | 827,366 | ||||
NON-GAAP CORE EBITDA RECONCILIATION
Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss (gain) on investment and equity securities, loss on disposal of mining equipment, impairment loss on mining equipment and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners.
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:
| Three months ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net income (loss) | $ | (5,406,999 | ) | $ | 2,353,838 | ||
| Income tax expense | - | - | |||||
| Interest expense | 220,906 | 70,826 | |||||
| Depreciation and amortization | 2,037,578 | 1,976,196 | |||||
| Income (loss) before interest, taxes & depreciation | $ | (3,148,515 | ) | $ | 4,400,860 | ||
| Unrealized loss (gain) on investment and equity securities | 25,984 | (1,350,979 | ) | ||||
| Loss on disposal of mining equipment | 186,781 | 8,170 | |||||
| Impairment loss on mining equipment | - | 1,188,058 | |||||
| Stock compensation and option expense | 110,805 | 181,851 | |||||
| Core income (loss) before interest, taxes & depreciation | $ | (2,824,945 | ) | $ | 4,427,960 | ||
_________________
1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.
2 Calculated using 5,133,412 shares outstanding as of 12/31/24 from SEC Form 10-K filed March 31, 2025.
FAQ
What were LMFA's Bitcoin mining results in Q1 2025?
How many Bitcoin does LMFA hold and what is their value?
What is LMFA's mining margin in Q1 2025?
What expansion plans does LMFA have for 2025?
What was LMFA's net loss in Q1 2025?
