(NASDAQ:LMFA),
– Fourth quarter and full-year 2024 total revenue of $2.0 million and $11.0 million, respectively.
– Fourth quarter and full-year 2024 CORE EBITDA of $3.3 million and $3.9 million, respectively.
– Held 165.8 Bitcoin on February 28, 2025 valued at approximately $14.4 million, as of March 26, 2025
TAMPA, Fla., March 31, 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 and full year ended December 31, 2024.
Q4'24 Financial Highlights
All variances are compared with prior year unless stated otherwise:
- Mined 21.7 Bitcoin at an average price of approximately $83,000, generating total revenue of approximately $2.0 million. The year-over-year decrease in revenue primarily reflects the effects of the April 2024 Bitcoin Halving event and the transition of miners from storage into the new Oklahoma mining site.
- Net income attributable to LM Funding shareholders was approximately $2.0 million compared with a net loss of approximately $1.6 million. The improvement in the net income was primarily driven by the new ASU Bitcoin standards that require mark-to-market valuation adjustment for our Bitcoin holdings.
- Core EBITDA was approximately $3.3 million compared with $0.3 million1. The improvements in Core EBITDA were primarily due to gains on the fair value of Bitcoin in addition to lower digital mining costs and reduced compensation.
- At year end, cash was approximately $3.4 million. Digital assets were $14.0 million based on 150.2 Bitcoin held at a price of approximately $93,000 as of December 31, 2024.
- Net book value of equity was approximately $35.3 million as of December 31, 2024 or $7.21 per share2.
- As of February 28, 2025, held 165.8 Bitcoin valued at approximately $14.4 million as of March 26, 2025 (based on Bitcoin price of approximately $87,000) or Bitcoin per share of $2.813.
________________________
1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.
2,3 Based on shares outstanding of 5,133,412 as of December 31, 2024.
Q4'24 Operational Highlights
- 15 MW site acquisition: The Company further executed its transition from an infrastructure-light strategy, mining at hosted facilities, to a fully vertically integrated strategy with low-cost electricity underpinning its operations. In addition to the low-cost energy, the strategy allows controlled uptime, which LM Funding believes will lead to more efficient mining and higher margins.
- Mining fleet upgrade: In Q1 2025, the Company partnered with Luxor Technology Corporation to install their proprietary LuxOS firmware on its existing fleet, which could potentially boost the Company's mining efficiency by 10-15%. This upgrade allows LM Funding to mine Bitcoin at a higher profitability without any additional capex investment.
CEO Commentary
Bruce Rodgers, Chairman and CEO of LM Funding, commented, “Using the halving as our pivot point of opportunity, we transitioned from an infrastructure-light hosted mining strategy to a vertically integrated model–one where we manage the infrastructure ourselves, ensuring better margins and mitigating risks associated with third-party hosting arrangements. With our Oklahoma facility, we secured low-cost power for our miners and now we own and totally control our mining infrastructure and costs. This vertical integration significantly reduces our fleet-wide energy costs and improves our operations for enhanced uptime and mining efficiency. Looking forward, our strong balance sheet and lean operations position us to grow our mining revenue by seeking to acquire new mining sites with similar size, prices, and terms.”
CFO Commentary
Richard Russell, CFO of LM Funding, stated, “Throughout our expansion last year, we remained disciplined in our spending. By actively maintaining a low-cost structure – from power sourcing and infrastructure investments to staffing and equipment – we were able to successfully navigate a challenging year for the industry and our first Bitcoin Halving event, which occurred in April 2024. This strategic cost control enabled us to achieve profitability in 2024 on a Core EBITDA basis, as well as grow our Bitcoin treasury, which is a significant piece of our long-term strategy. By retaining a portion of our Bitcoin mined, we not only capture potential upside for shareholders but also deepen our alignment with the broader Bitcoin industry.”
Full Year 2024 Financial Highlights
All variances are compared with prior year unless stated otherwise:
- Mined 170.6 Bitcoin at an average price of approximately $61,000, generating total revenue of approximately $11.0 million. The year-over-year decrease in revenue primarily reflects the effects of the April 2024 Bitcoin halving event.
- Net loss attributable to LM Funding shareholders for the year ended December 31, 2024, was approximately $7.3 million compared with a net loss of approximately $15.9 million in 2023.
- Core EBITDA income for the twelve months ended December 31, 2024 was approximately $3.9 million, compared with a Core EBITDA loss of $0.2 million in 2023. The improvements in Core EBITDA were primarily due to gains on the fair value of Bitcoin in addition to lower digital mining costs and reduced compensation.
Investor Conference Call
LM Funding will host a conference call today, March 31, 2025, at 8:00 A.M. Eastern Time to discuss the Company's financial results for the quarter and full year ended December 31, 2024, 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: March 31, 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 Consolidated Balance Sheets (unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Cash | $ | 3,378,152 | $ | 2,401,831 | ||||
| Digital assets – current (Note 4) | 9,021,927 | 3,416,256 | ||||||
| Finance receivables | 21,051 | 19,221 | ||||||
| Marketable securities (Note 7) | 27,050 | 17,860 | ||||||
| Receivable from sale of Symbiont assets (Note 7) | 200,000 | 200,000 | ||||||
| Prepaid expenses and other assets | 827,237 | 4,067,212 | ||||||
| Income tax receivable | 31,187 | 31,187 | ||||||
| Current assets | 13,506,604 | 10,153,567 | ||||||
| Fixed assets, net (Note 5) | 18,376,948 | 24,519,610 | ||||||
| Intangible assets, net (Note 5) | 5,478,958 | – | ||||||
| Deposits on mining equipment (Note 6) | 467,172 | 20,837 | ||||||
| Notes receivable from Seastar Medical Holding Corporation (Note 7) | – | 1,440,498 | ||||||
| Long-term investments – equity securities (Note 7) | 4,255 | 156,992 | ||||||
| Investment in Seastar Medical Holding Corporation (Note 7) | 200,790 | 1,145,486 | ||||||
| Digital assets – long-term (Note 4) | 5,000,000 | – | ||||||
| Operating lease – right of use assets (Note 9) | 938,641 | 189,009 | ||||||
| Other assets | 73,857 | 86,798 | ||||||
| Long-term assets | 30,540,621 | 27,559,230 | ||||||
| Total assets | $ | 44,047,225 | $ | 37,712,797 | ||||
| Liabilities and stockholders' equity | ||||||||
| Accounts payable and accrued expenses | 989,563 | 2,064,909 | ||||||
| Note payable – short-term (Note 8) | 386,312 | 567,586 | ||||||
| Due to related parties (Note 11) | 15,944 | 22,845 | ||||||
| Current portion of lease liability (Note 9) | 170,967 | 110,384 | ||||||
| Total current liabilities | 1,562,786 | 2,765,724 | ||||||
| Note payable – long-term (Note 8) | 6,365,345 | – | ||||||
| Lease liability – net of current portion (Note 9) | 776,535 | 85,775 | ||||||
| Long-term liabilities | 7,141,880 | 85,775 | ||||||
| Total liabilities | 8,704,666 | 2,851,499 | ||||||
| Stockholders' equity (Note 12) | ||||||||
| Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of December 31, 2024 and December 31, 2023 | – | – | ||||||
| Common stock, par value $.001; 350,000,000 shares authorized; 5,133,412 shares issued and outstanding as of December 31, 2024 and 2,492,964 as of December 31, 2023 | 4,602 | 2,493 | ||||||
| Additional paid-in capital | 102,685,470 | 95,145,376 | ||||||
| Accumulated deficit | (65,662,731 | ) | (58,961,461 | ) | ||||
| Total LM Funding America stockholders' equity | 37,027,341 | 36,186,408 | ||||||
| Non-controlling interest | (1,684,782 | ) | (1,325,110 | ) | ||||
| Total stockholders' equity | 35,342,559 | 34,861,298 | ||||||
| Total liabilities and stockholders' equity | $ | 44,047,225 | $ | 37,712,797 | ||||
| LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues: | ||||||||||||||||
| Digital mining revenues | $ | 1,814,169 | $ | 3,946,485 | $ | 10,432,605 | $ | 12,289,131 | ||||||||
| Specialty finance revenue | 140,377 | 75,901 | 443,599 | 550,445 | ||||||||||||
| Rental revenue | 30,678 | 33,028 | 123,444 | 144,514 | ||||||||||||
| Total revenues | 1,985,224 | 4,055,414 | 10,999,648 | 12,984,090 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 1,248,083 | 2,668,770 | 6,990,856 | 9,406,940 | ||||||||||||
| Staff costs and payroll | 907,883 | 1,121,796 | 4,556,781 | 5,858,736 | ||||||||||||
| Depreciation and amortization | 658,757 | 1,495,614 | 7,774,161 | 4,983,480 | ||||||||||||
| Gain on fair value of Bitcoin, net | (4,254,031 | ) | (383,497 | ) | (7,350,805 | ) | – | |||||||||
| Impairment loss on mining equipment | 191,317 | 261,191 | 1,379,375 | – | ||||||||||||
| Impairment loss on mined digital assets | – | 280,278 | – | 965,967 | ||||||||||||
| Realized gain on sale of mined digital assets | – | (999,717 | ) | – | (2,070,508 | ) | ||||||||||
| Professional fees | 434,251 | 634,535 | 2,057,165 | 1,863,038 | ||||||||||||
| Selling, general and administrative | 234,366 | 168,632 | 817,041 | 851,806 | ||||||||||||
| Real estate management and disposal | 70,483 | 19,105 | 159,913 | 146,716 | ||||||||||||
| Collection costs | 4,647 | 12,342 | 41,043 | 29,875 | ||||||||||||
| Settlement costs with associations | – | – | – | 10,000 | ||||||||||||
| Loss on disposal of assets | 81,594 | 9,389 | 136,100 | 9,389 | ||||||||||||
| Other operating costs | 232,168 | 542,105 | 899,569 | 999,959 | ||||||||||||
| Total operating costs and expenses | (190,482 | ) | 5,830,543 | 17,461,199 | 23,055,398 | |||||||||||
| Operating income (loss) | 2,175,706 | (1,775,129 | ) | (6,461,551 | ) | (10,071,308 | ) | |||||||||
| Unrealized gain on marketable securities | 8,206 | 7,134 | 9,190 | 13,570 | ||||||||||||
| Impairment loss on prepaid machine deposits | – | – | (12,941 | ) | (36,691 | ) | ||||||||||
| Impairment loss on prepaid hosting deposits | – | (184,236 | ) | – | (184,236 | ) | ||||||||||
| Unrealized loss on investment and equity securities | (244,809 | ) | 546,563 | (1,097,433 | ) | (9,771,050 | ) | |||||||||
| Impairment loss on Symbiont assets | – | – | – | (750,678 | ) | |||||||||||
| Gain on fair value of purchased Bitcoin, net | (18,729 | ) | – | 39,197 | – | |||||||||||
| Credit loss on Seastar note receivable | – | 22,344 | – | – | ||||||||||||
| Realized gain on securities | – | 2,632 | – | 4,420 | ||||||||||||
| Realized gain on sale of purchased digital assets | – | – | – | 1,917 | ||||||||||||
| Gain on adjustment of note receivable allowance | – | – | – | 1,052,542 | ||||||||||||
| Other income – coupon sales | – | – | 4,490 | 639,472 | ||||||||||||
| Other income – financing revenue | – | – | – | 37,660 | ||||||||||||
| Interest expense | (211,946 | ) | – | (443,700 | ) | – | ||||||||||
| Interest income | 182,620 | 38,705 | 307,316 | 249,586 | ||||||||||||
| Income (loss) before income taxes | 1,891,048 | (1,341,987 | ) | (7,655,432 | ) | (18,814,796 | ) | |||||||||
| Income tax expense | – | (60,571 | ) | – | (60,571 | ) | ||||||||||
| Net income (loss) | $ | 1,891,048 | $ | (1,402,558 | ) | $ | (7,655,432 | ) | $ | (18,875,367 | ) | |||||
| Less: loss attributable to non-controlling interest | 74,760 | (189,208 | ) | 340,056 | 2,931,113 | |||||||||||
| Net income (loss) attributable to LM Funding America Inc. | $ | 1,965,808 | $ | (1,591,766 | ) | $ | (7,315,376 | ) | $ | (15,944,254 | ) | |||||
| Less: deemed dividends (Note 12) | (5,090,619 | ) | – | (6,794,924 | ) | – | ||||||||||
| Net loss attributable to common shareholders | $ | (3,124,811 | ) | $ | (1,591,766 | ) | $ | (14,110,300 | ) | $ | (15,944,254 | ) | ||||
| Basic loss per common share (Note 1) | $ | (0.86 | ) | $ | (0.67 | ) | $ | (5.02 | ) | $ | (6.98 | ) | ||||
| Diluted loss per common share (Note 1) | $ | (0.86 | ) | $ | (0.67 | ) | $ | (5.02 | ) | $ | (6.98 | ) | ||||
| Weighted average number of common shares outstanding | ||||||||||||||||
| Basic | 3,650,624 | 2,362,964 | 2,808,064 | 2,283,836 | ||||||||||||
| Diluted | 3,650,624 | 2,362,964 | 2,808,064 | 2,283,836 | ||||||||||||
| LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) | ||||||||
| Years Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (7,655,432 | ) | $ | (18,875,367 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
| Depreciation and amortization | 7,774,161 | 4,983,480 | ||||||
| Noncash lease expense | 109,842 | 98,536 | ||||||
| Amortization of debt issue costs | 35,435 | – | ||||||
| Stock compensation | 76,322 | 1,095,705 | ||||||
| Stock option expense | 443,220 | 1,843,731 | ||||||
| Professional fees paid in common shares | 100,001 | – | ||||||
| Accrued investment income | (197,104 | ) | (159,692 | ) | ||||
| Digital assets other income | (4,490 | ) | – | |||||
| Gain on fair value of Bitcoin, net | (7,390,002 | ) | – | |||||
| Impairment loss on mining machines | 1,379,375 | – | ||||||
| Impairment loss on digital assets | – | 965,967 | ||||||
| Impairment loss on mining machine deposits | 12,941 | 36,691 | ||||||
| Impairment loss on hosting deposits | – | 184,236 | ||||||
| Impairment loss on Symbiont assets | – | 750,678 | ||||||
| Unrealized gain on marketable securities | (9,190 | ) | (13,570 | ) | ||||
| Realized gain on securities | – | (4,420 | ) | |||||
| Unrealized loss on investment and equity securities | 1,097,433 | 9,771,050 | ||||||
| Loss on disposal of fixed assets | 136,100 | 9,389 | ||||||
| Allowance for loss on debt security | – | – | ||||||
| Proceeds from securities | – | 744,036 | ||||||
| Realized gain on sale of digital assets | – | (2,072,425 | ) | |||||
| Reversal of allowance loss on debt security | – | (1,052,542 | ) | |||||
| Investments in marketable securities | – | (739,616 | ) | |||||
| Change in operating assets and liabilities: | ||||||||
| Prepaid expenses and other assets | 3,781,133 | 189,407 | ||||||
| Hosting deposits | (12,941 | ) | (36,691 | ) | ||||
| Repayments to related party | (6,901 | ) | (52,643 | ) | ||||
| Accounts payable and accrued expenses | (1,075,346 | ) | 177,478 | |||||
| Mining of digital assets | (10,432,605 | ) | (12,289,131 | ) | ||||
| Proceeds from sale of digital assets | — | 10,874,701 | ||||||
| Lease liability payments | (108,131 | ) | (95,948 | ) | ||||
| Income tax receivable | — | 262,279 | ||||||
| Net cash used in operating activities | (11,946,179 | ) | (3,404,681 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Net collections of finance receivables – original product | 1,059 | (6,428 | ) | |||||
| Net collections of finance receivables – special product | (2,889 | ) | 14,009 | |||||
| Capital expenditures | (1,732,472 | ) | (1,625,284 | ) | ||||
| Proceeds from sale of fixed assets | 78,806 | – | ||||||
| Acquisition of Tech Infrastructure JV I LLC assets | (3,642,870 | ) | – | |||||
| Investment in note receivable | (3,587,195 | ) | (125,000 | ) | ||||
| Collection of note receivable | – | 2,651,943 | ||||||
| Collection of note receivable – related party | 1,449,066 | – | ||||||
| Investment in digital assets | (485,500 | ) | (35,157 | ) | ||||
| Proceeds from sale of digital assets | 8,309,104 | 27,815 | ||||||
| Proceeds from the sale of tether | 11,928 | – | ||||||
| Symbiont asset acquisition | – | 1,800,000 | ||||||
| Financing activities for Symbiont asset acquisition | – | (402,361 | ) | |||||
| Distribution to members | (19,616 | ) | – | |||||
| Net cash provided by investing activities | 379,421 | 2,299,537 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from borrowings | 6,329,910 | – | ||||||
| Insurance financing repayments | (709,491 | ) | (624,481 | ) | ||||
| Exercise of warrants | 4,748,971 | |||||||
| Exercise of options | 25,000 | – | ||||||
| Proceeds from equity offering | 2,148,689 | – | ||||||
| Issue costs for the issuance of common stock | — | (106,550 | ) | |||||
| Net cash provided by (used in) financing activities | 12,543,079 | (731,031 | ) | |||||
| NET INCREASE (DECREASE) IN CASH | $ | 976,321 | $ | (1,836,175 | ) | |||
| CASH – BEGINNING OF PERIOD | 2,401,831 | 4,238,006 | ||||||
| CASH – END OF PERIOD | $ | 3,378,152 | $ | 2,401,831 | ||||
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 on investment and equity securities, impairment loss on mined digital assets, impairment of long-lived assets, impairment of prepaid hosting deposits, contract termination costs 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 December 31, | Years Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net loss | $ | 1,891,048 | $ | (1,402,558 | ) | $ | (7,655,432 | ) | $ | (18,875,367 | ) | |||||
| Income tax expense | – | 60,571 | – | 60,571 | ||||||||||||
| Interest expense | 211,946 | – | 443,700 | – | ||||||||||||
| Depreciation and amortization | 658,757 | 1,495,614 | 7,774,161 | 4,983,480 | ||||||||||||
| Income (loss) before interest, taxes & depreciation | $ | 2,761,751 | $ | 153,627 | $ | 562,429 | $ | (13,831,316 | ) | |||||||
| Unrealized loss on investment and equity securities | 244,809 | (546,563 | ) | 1,097,433 | 9,771,050 | |||||||||||
| Gain on adjustment of note receivable allowance | – | – | – | (1,052,542 | ) | |||||||||||
| Impairment loss on mined digital assets | – | 143,317 | – | 965,967 | ||||||||||||
| Impairment loss on prepaid machine deposits | 12,941 | – | 12,941 | 36,691 | ||||||||||||
| Impairment loss on prepaid hosting deposits | – | 184,236 | – | 184,236 | ||||||||||||
| Costs associated with At-the-Market Equity program | – | – | 119,050 | – | ||||||||||||
| Contract termination costs | – | – | 250,001 | – | ||||||||||||
| Impairment loss on Symbiont assets | – | – | – | 750,678 | ||||||||||||
| Impairment loss on mining equipment | 191,317 | – | 1,379,375 | – | ||||||||||||
| Stock compensation and option expense | 110,805 | 410,584 | 519,542 | 2,939,436 | ||||||||||||
| Core income (loss) before interest, taxes & depreciation | $ | 3,321,623 | $ | 345,201 | $ | 3,940,771 | $ | (235,800 | ) | |||||||
