EX-99.1 2 lmfa-ex99_1.htm EX-99.1 EX-99.1

 

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

- 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, FL, August 14, 2025—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 EBITDA[1]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 share[2], 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

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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.”


 

[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.

 

 

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

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•
Time: 8:00 AM EST
•
Participant Call Links:
o
Live Webcast: Link
o
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

 

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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

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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

 

 

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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)

 

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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

 

 

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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 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:

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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)

                     (2,256,183)

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

 

 

 

 

 

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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 income (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

 

 $ (6,182,986)

 $ (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

 

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