LM Funding America, Inc. Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

LM Funding America (NASDAQ:LMFA), a Bitcoin mining company, reported Q2 2025 financial results with $1.9 million in revenue, down 18.7% sequentially and 36.0% year-over-year. The company achieved $0.1 million in GAAP net income and $2.6 million Core EBITDA, improving from Q1's $5.4 million net loss.

Key highlights include a definitive agreement to acquire an 11 MW Bitcoin mining site in Mississippi for $3.9 million, improved direct mining margin to 41.0% from 38.5% in Q1, and Bitcoin holdings of 150.4 BTC valued at $18.0 million as of August 11, 2025. The company generated $223,000 in curtailment and energy sales, up 49.2% sequentially, demonstrating successful power grid integration strategy.

Positive

• Improved direct mining margin to 41.0% from 38.5% in Q1 2025
• Generated $223,000 in curtailment and energy sales, up 49.2% sequentially
• Achieved $0.1M GAAP net income and $2.6M Core EBITDA, reversing previous quarter losses
• Strategic acquisition of 11 MW Bitcoin mining site for $3.9M ($355,000/MW)
• Significant Bitcoin holdings of 150.4 BTC valued at $18.0M

Negative

• Revenue declined 18.7% sequentially and 36.0% year-over-year to $1.9M
• Bitcoin production decreased 24.3% sequentially to 18.4 BTC
• Operating expenses increased 16.6% year-over-year and 2.5% sequentially to $2.0M
• Cash position relatively low at $0.4M as of June 30, 2025

Insights

Financial Analyst specializing in cryptocurrency mining operations

LMFA's Q2 returned to profitability with improved mining margins despite lower production, bolstered by Bitcoin price gains and strategic acquisitions.

LMFA's Q2 results show a company balancing operational challenges with strategic growth. Despite a 24.3% sequential decline in Bitcoin production to 18.4 BTC and an 18.7% drop in revenue to $1.9 million, the company has achieved significant financial improvements. Their return to profitability with $0.1 million in net income (compared to a $5.4 million loss in Q1) was largely driven by a $3.8 million gain from Bitcoin holdings appreciation.

The company's mining margins improved to 41.0% from 38.5% in Q1, demonstrating operational efficiency gains despite production challenges. This improvement stems from their vertical integration strategy and $223,000 in curtailment and energy sales—a 49.2% sequential increase. This power grid integration approach represents a clever partial hedge against Bitcoin price volatility.

LMFA's expansion strategy is taking shape with the $3.9 million acquisition of an 11 MW Mississippi site and ongoing 2 MW Oklahoma expansion. These initiatives should increase their owned capacity to 26 MW, supporting future growth. Their substantial Bitcoin treasury of 150.4 BTC (valued at approximately $18.0 million as of August 11) represents a significant portion of their $31.9 million book value.

However, investors should note the 16.6% year-over-year increase in operating expenses to $2.0 million, driven by expansion-related costs. The company's limited cash position of only $0.4 million makes them heavily dependent on their Bitcoin holdings for liquidity and future investments. Their strategy clearly emphasizes Bitcoin accumulation over immediate revenue generation, aligning with a long-term perspective on cryptocurrency appreciation.

- Definitive asset purchase agreement for 11 MW Bitcoin mining site in Mississippi
- Direct mining margin improved to 41.0% from 38.5% in Q1 2025
- $0.1 million GAAP net income and $2.6M Core EBITDA, up from sequential $5.4 million net loss and $2.8 million negative Core EBITDA in Q1 2025, respectively
- Held 150.4 Bitcoin on July 31, 2025 valued at approximately $18.0 million, as of August 11, 2025

TAMPA, Fla., Aug. 14, 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 June 30, 2025.

Q2’25 Financial Highlights

• Total revenue for the quarter was $1.9 million dollars, down 18.7% sequentially from Q1 2025 and down 36.0% year-over-year. The Company mined 18.4 Bitcoins during the quarter, down 24.3% sequentially, at an average price of approximately $98,100. The sequential decline was due to higher curtailment as a result of peak summer months and downtime due to the relocation of approximately 800 miners from a third party hosting site to the Company’s wholly-owned site in Oklahoma.
• The Company generated approximately $223,000 in curtailment and energy sales for the quarter, up 49.2% sequentially.
• Mining margin improved to 41.0%, compared with 38.5% in the first quarter 2025, driven by the power sales offsetting digital mining cost of revenues and increased operational efficiency from the Company’s vertical integration strategy.
• Operating expenses, including staff costs & payroll, professional fees, SG&A and other operating costs, increased by 16.6% year-over-year and 2.5% sequentially to $2.0 million driven by increased legal and consulting costs tied to expansion initiatives and staffing costs for Oklahoma site.
• Net income for the quarter was $0.1 million and Core EBITDA¹ was $2.6 million, both driven by a $3.8 million gain on fair value of Bitcoin held on the balance sheet as of June 30, 2025.
• Cash was approximately $0.4 million and Bitcoin holdings totaled 155.5 Bitcoin, valued at $16.7 million based on Bitcoin price of approximately $107,170, as of June 30, 2025.
• Net book value of LM Funding stockholders’ equity was approximately $31.9 million, or $6.21 per share², as of June 30, 2025.
• As of July 31, 2025 the Company held 150.4 Bitcoin, valued at approximately $18.0 million, based on a Bitcoin price of $120,000 as of August 11, 2025.

Q2’25 and Recent Operational Highlights

• Mississippi 11 MW acquisition: On August 1, 2025 LM Funding announced it entered into a definitive asset purchase agreement to acquire a 6.4-acre Bitcoin mining site in Mississippi with an anticipated 11 MW interconnect from Greenidge Generation Holdings Inc. (“Greenidge”) for $3.9 million in cash. The purchase includes the real property and onsite power infrastructure—including a 3,000 kVA transformer relocated to the parcel, with 7.5 MW operational. Closing is targeted on or before September 16, 2025, subject to customary due diligence and other conditions.
• Oklahoma 2 MW expansion: The project remains on track to be energized later this year, with immersion containers expected to be delivered in Q3 2025. This expansion positions the Company to add 2 MW of capacity and benefit from immersion cooling’s improved thermal performance and operational stability in high-heat conditions.
• Power grid integration strategy: In the second quarter, the Company generated $223,000 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 from 38.5% in the first quarter 2025 to 41.0% in the second quarter 2025. The initiative continued to gain momentum, with July 2025 curtailment and energy sales reaching approximately $66,000. This approach continues to allow the Company to maximize the value of its power sites and create a partial hedge against Bitcoin price volatility.
  

Management Commentary

“We continue to advance our vertical integration and disciplined growth strategy,” commented Bruce Rodgers, Chairman and CEO of LM Funding. “In the second quarter, we relocated approximately 800 hosted, next-generation miners, completing the final step of our hosting exit. In addition, our 2 MW immersion mining expansion at our Oklahoma site is on track for energization later this year. Further, on August 1st, we signed a definitive purchase agreement to acquire an 11 MW Bitcoin mining site in Mississippi from Greenidge for $3.9 million or about $355,000 per MW—giving us a clear path to as much as 26 MW of owned capacity. This purchase will be fully funded by our balance sheet.”

“Our Q2 results highlight the operational upgrades we’ve implemented and the benefits of our vertically integrated strategy,” commented Richard Russell, CFO of LM Funding. “Even though Bitcoin production decreased sequentially due to peak-summer-related curtailments and the relocation of our remaining hosted miners, our increased mining efficiency and power sales strategy improved our direct mining margins sequentially to 41.0% from 38.5%. Further, we recorded $0.1 million of GAAP net income and $2.6 million of Core EBITDA for the quarter. Given our disciplined cost structure and targeted growth initiatives, we are confident in our ability to steadily grow our asset base, specifically our Bitcoin Treasury, over time, creating long-term value for our shareholders.”

Investor Conference Call

LM Funding will host a conference call today, August 14, 2025, at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 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: August 14, 2025 
• Time: 8:00 AM EST 
• Participant Call Links: 
  • Live Webcast: Link 
  • Participant Call Registration: Link 
    

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
		June 30,				December 31,
		2025 (unaudited)				2024
Assets
Cash		$	353,580			$	3,378,152
Digital assets - current (Note 2)			11,677,773				9,021,927
Finance receivables			26,120				21,051
Marketable securities (Note 5)			13,230				27,050
Receivable from sale of Symbiont assets (Note 5)			-				200,000
Prepaid expenses and other assets			597,136				827,237
Income tax receivable			31,187				31,187
Current assets			12,699,026				13,506,604
Fixed assets, net (Note 3)			14,517,943				18,376,948
Intangible assets, net (Note 3)			5,369,012				5,478,958
Deposits on mining equipment (Note 4)			483,592				467,172
Long-term investments - equity securities (Note 5)			4,111				4,255
Investment in Seastar Medical Holding Corporation (Note 5)			44,060				200,790
Digital assets - long-term (Note 2)			5,000,000				5,000,000
Right of use assets (Note 7)			842,268				938,641
Other assets			73,857				73,857
Long-term assets			26,334,843				30,540,621
Total assets		$	39,033,869			$	44,047,225
Liabilities and stockholders' equity
Accounts payable and accrued expenses			1,530,077				989,563
Note payable - short-term (Note 6)			1,643,759				386,312
Due to related parties (Note 9)			21,393				15,944
Current portion of lease liability (Note 7)			187,139				170,967
Total current liabilities			3,382,368				1,562,786
Note payable - long-term (Note 6)			4,907,873				6,365,345
Lease liability - net of current portion (Note 7)			619,442				776,535
Long-term liabilities			5,527,315				7,141,880
Total liabilities			8,909,683				8,704,666
Stockholders' equity (Note 8)
Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of June 30, 2025 and December 31, 2024			-				-
Common stock, par value $.001; 350,000,000 shares authorized; 5,133,412 shares issued and outstanding as of June 30, 2025 and December 31, 2024			4,602				4,602
Additional paid-in capital			102,814,611				102,685,470
Accumulated deficit			(70,960,851	)			(65,662,731	)
Total LM Funding America stockholders' equity			31,858,362				37,027,341
Non-controlling interest			(1,734,176	)			(1,684,782	)
Total stockholders' equity			30,124,186				35,342,559
Total liabilities and stockholders’ equity		$	39,033,869			$	44,047,225

LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations
		Three months ended June 30,								Six months ended June 30,
		2025				2024				2025				2024
Revenues:
Digital mining revenues		$	1,806,364			$	2,893,073			$	4,080,304			$	7,490,981
Specialty finance revenue			94,945				89,036				162,334				205,664
Rental revenue			27,015				29,238				57,023				62,306
Total revenues			1,928,324				3,011,347				4,299,661				7,758,951
Operating costs and expenses:
Digital mining cost of revenues (exclusive of depreciation and amortization shown below)			1,288,399				2,357,111				2,836,694				5,012,057
Curtailment and energy sales			(223,269	)			-				(372,955	)			-
Staff costs and payroll			1,087,627				837,888				2,138,104				2,080,914
Depreciation and amortization			2,039,343				1,875,359				4,076,921				3,851,555
Loss (gain) on fair value of Bitcoin, net			(3,761,139	)			1,265,485				(1,951,163	)			(2,992,030	)
Impairment loss on mining equipment			-				-				-				1,188,058
Professional fees			308,829				484,335				673,314				994,228
Selling, general and administrative			375,420				195,681				685,384				373,587
Real estate management and disposal			22,420				31,097				58,734				58,286
Collection costs			8,589				20,416				25,941				21,342
Settlement costs with associations			-				-				3,693				-
Loss on disposal of assets			99,578				33,887				286,359				42,057
Other operating costs			259,012				223,112				514,960				437,617
Total operating costs and expenses			1,504,809				7,324,371				8,975,986				11,067,671
Operating income (loss)			423,515				(4,313,024	)			(4,676,325	)			(3,308,720	)
Unrealized gain (loss) on marketable securities			(5,110	)			6,440				(13,820	)			4,280
Unrealized loss on investment and equity securities			(130,890	)			(1,856,737	)			(156,874	)			(505,758	)
Gain (loss) on fair value of purchased Bitcoin, net			-				-				(52,704	)			57,926
Other income - coupon sales			-				-				-				4,490
Interest expense			(227,546	)			(36,893	)			(448,452	)			(107,719	)
Interest income			531				17,228				1,676				26,353
Income (loss) before income taxes			60,500				(6,182,986	)			(5,346,499	)			(3,829,148	)
Income tax expense			-				-				-				-
Net income (loss)		$	60,500			$	(6,182,986	)		$	(5,346,499	)		$	(3,829,148	)
Less: loss attributable to non-controlling interest			40,054				574,474				48,379				160,253
Net income (loss) attributable to LM Funding America Inc.		$	100,554			$	(5,608,512	)		$	(5,298,120	)		$	(3,668,895	)
Basic income (loss) per common share (Note 1)		$	0.02			$	(2.26	)		$	(1.03	)		$	(1.49	)
Diluted income (loss) per common share (Note 1)		$	0.02			$	(2.26	)		$	(1.03	)		$	(1.49	)
Weighted average number of common shares outstanding
Basic			5,133,412				2,485,822				5,133,412				2,457,012
Diluted			5,133,412				2,485,822				5,133,412				2,457,012

LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Cash Flows
		Six months ended June 30,
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(5,346,499	)		$	(3,829,148	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization			4,076,921				3,851,555
Noncash lease expense			96,373				52,579
Amortization of debt issue costs			42,528				-
Stock compensation			-				76,322
Stock option expense			135,426				221,609
Accrued investment income			-				(25,265	)
Accrued interest expense on finance lease			30,553				-
Digital assets other income			-				(4,490	)
Gain on fair value of Bitcoin, net			(1,898,459	)			(3,049,956	)
Impairment loss on mining machines			-				1,188,058
Unrealized loss (gain) on marketable securities			13,820				(4,280	)
Unrealized loss (gain) on investment and equity securities			156,874				505,758
Loss on disposal of fixed assets			286,359				42,057
Change in operating assets and liabilities:
Prepaid expenses and other assets			398,424				3,218,789
Repayments to related party			5,449				30,730
Accounts payable and accrued expenses			540,514				(718,557	)
Mining of digital assets			(4,080,304	)			(7,490,981	)
Lease liability payments			(171,474	)			(53,044	)
Net cash used in operating activities			(5,713,495	)			(5,988,264	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net collections of finance receivables - original product			(2,434	)			(14,443	)
Net collections of finance receivables - special product			(2,635	)			(631	)
Capital expenditures			(377,212	)			(1,226,602	)
Proceeds from sale of fixed assets			953,153				78,806
Investment in notes receivable			-				(2,094,351	)
Collection of note receivable			200,000				1,449,066
Investment in digital assets - tether			(30,315	)			-
Proceeds from sale of Bitcoin			3,323,773				4,543,685
Proceeds from the sale of tether			29,460				-
Deposits for mining equipment			(986,690	)			-
Distribution to members			(1,015	)			(19,616	)
Net cash provided by investing activities			3,106,085				2,715,914
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings			-				1,500,000
Insurance financing repayments			(410,877	)			(483,833	)
Issuance costs			(6,285	)			-
Net cash provided by (used in) financing activities			(417,162	)			1,016,167
NET DECREASE IN CASH			(3,024,572	)			(2,256,182	)
CASH - BEGINNING OF PERIOD			3,378,152				2,401,831
CASH - END OF PERIOD		$	353,580			$	145,648
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
Insurance financing		$	168,324			$	-
Change in accounting principle (see Note 1)		$	-			$	614,106
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION
Cash paid for taxes		$	-			$	-
Cash paid for interest		$	337,850			$	134,751

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 June 30,								Six months ended June 30,
		2025				2024				2025				2024
Net income (loss)		$	60,500			$	(6,182,985	)		$	(5,346,499	)		$	(3,829,148	)
Income tax expense			-				-				-				-
Interest expense			227,546				36,893				448,452				107,719
Depreciation and amortization			2,039,343				1,875,359				4,076,921				3,851,555
Income (loss) before interest, taxes & depreciation		$	2,327,389			$	(4,270,734	)		$	(821,126	)		$	130,126
Unrealized loss on investment and equity securities			130,890				1,856,737				156,874				505,758
Loss on disposal of mining equipment			99,578				33,887				286,359				42,057
Impairment loss on mining equipment			-				-				-				1,188,058
Stock compensation and option expense			24,621				116,080				135,426				297,931
Core income (loss) before interest, taxes & depreciation		$	2,582,478			$	(2,264,030	)		$	(242,467	)		$	2,163,930

_______________________

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 June 30,2025.

FAQ

What were LM Funding's (LMFA) Q2 2025 earnings results?

LMFA reported $1.9 million in revenue, $0.1 million in GAAP net income, and $2.6 million in Core EBITDA. The company's direct mining margin improved to 41.0% despite revenue declining 18.7% sequentially.

How many Bitcoin does LM Funding (LMFA) currently hold?

As of July 31, 2025, LMFA held 150.4 Bitcoin valued at approximately $18.0 million (based on Bitcoin price of $120,000 as of August 11, 2025).

What is the status of LMFA's Mississippi mining site acquisition?

LMFA entered a definitive agreement to acquire an 11 MW Bitcoin mining site in Mississippi for $3.9 million from Greenidge Generation Holdings. The closing is targeted for September 16, 2025, subject to due diligence.

How much revenue did LMFA generate from power sales in Q2 2025?

LMFA generated $223,000 in curtailment and energy sales during Q2 2025, representing a 49.2% increase from the previous quarter.

What is LMFA's book value per share?

LM Funding's net book value was approximately $31.9 million, or $6.21 per share, as of June 30, 2025.