Core Viewpoint - LM Funding America, Inc. has successfully raised approximately $23.0 million through a registered direct offering and a private placement, primarily aimed at enhancing its Bitcoin treasury holdings [1][2][4]. Group 1: Capital Raising and Financial Strategy - The company has priced a $12.6 million registered direct offering and closed a $10.4 million private placement, with the majority of net proceeds intended for purchasing additional Bitcoin [1]. - The capital raise positions the company closer to unlocking additional capital-raising flexibility with the balance of its $150 million shelf registration [1]. - Bruce Rodgers, Chairman and CEO, emphasized that the offerings strengthen the balance sheet and facilitate future capital raising, aiming to create long-term shareholder value [4]. Group 2: Bitcoin Treasury and Mining Operations - LM Funding launched its Bitcoin treasury strategy in 2021 and expanded into Bitcoin mining operations in 2022, accumulating 150 Bitcoin and establishing a path to 26 megawatts of owned mining capacity [2]. - The mining operations segment is currently profitable on an operating income basis, helping to offset public company overhead while contributing incremental Bitcoin to the treasury [2]. - The company plans to acquire an 11 MW mining site in Columbus, Mississippi, which is expected to enhance its low-cost mining capacity and vertically integrated approach [3]. Group 3: Company Background - LM Funding America, Inc. operates as a Bitcoin treasury, mining, and technology-based specialty finance company, founded in 2008 and based in Tampa, Florida [7].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 30, 2025, show a decrease in total assets to $39.0 million from $44.0 million at year-end 2024, primarily due to a reduction in fixed assets, while total liabilities slightly increased to $8.9 million, and net income for Q2 2025 improved significantly to $60,500 from a net loss of $6.2 million in Q2 2024, largely driven by a substantial gain on the fair value of Bitcoin, though the six-month net loss widened to $5.3 million from $3.8 million year-over-year, with cash flow from operations remaining negative at ($5.7) million for the first six months of 2025 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $39.0 million, a decrease from $44.0 million at December 31, 2024, mainly due to a decline in fixed assets from $18.4 million to $14.5 million, while total liabilities increased slightly to $8.9 million from $8.7 million, and total stockholders' equity decreased to $30.1 million from $35.3 million over the same period Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $353.6 | $3,378.2 | | Digital assets - current | $11,677.8 | $9,021.9 | | Fixed assets, net | $14,517.9 | $18,376.9 | | Total assets | $39,033.9 | $44,047.2 | | **Liabilities & Equity** | | | | Total current liabilities | $3,382.4 | $1,562.8 | | Total liabilities | $8,909.7 | $8,704.7 | | Total stockholders' equity | $30,124.2 | $35,342.6 | | Total liabilities and stockholders' equity | $39,033.9 | $44,047.2 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, the company reported net income of $60,500, compared to a net loss of $6.2 million in the same period of 2024, primarily driven by a $3.8 million gain on the fair value of Bitcoin, contrasting with a $1.3 million loss in the prior year, while for the six-month period, the net loss increased to $5.3 million in 2025 from $3.8 million in 2024, as total revenues fell to $4.3 million from $7.8 million Statement of Operations Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,928.3 | $3,011.3 | $4,299.7 | $7,759.0 | | Digital mining revenues | $1,806.4 | $2,893.1 | $4,080.3 | $7,491.0 | | Operating Income (Loss) | $423.5 | $(4,313.0) | $(4,676.3) | $(3,308.7) | | Net Income (Loss) | $60.5 | $(6,183.0) | $(5,346.5) | $(3,829.1) | | Net Income (Loss) Attributable to LMFA | $100.6 | $(5,608.5) | $(5,298.1) | $(3,668.9) | | Basic EPS | $0.02 | $(2.26) | $(1.03) | $(1.49) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $5.7 million, net cash provided by investing activities was $3.1 million, primarily from $3.3 million in proceeds from the sale of Bitcoin, and net cash used in financing activities was $0.4 million, resulting in a net decrease in cash of $3.0 million, with the cash balance ending at $353,580 Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,713.5) | $(5,988.3) | | Net cash provided by investing activities | $3,106.1 | $2,715.9 | | Net cash provided by (used in) financing activities | $(417.2) | $1,016.2 | | **Net Decrease in Cash** | **$(3,024.6)** | **$(2,256.2)** | | Cash - Beginning of Period | $3,378.2 | $2,401.8 | | **Cash - End of Period** | **$353.6** | **$145.6** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Total stockholders' equity decreased from $35.3 million at the end of 2024 to $30.1 million as of June 30, 2025, primarily driven by a net loss of $5.3 million for the six-month period - Stockholders' equity decreased by approximately **$5.2 million** in the first six months of 2025, moving from **$35.3 million** to **$30.1 million**, mainly due to the net loss incurred during the period[12](index=12&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's two primary business lines: Bitcoin mining and specialty finance, a significant accounting policy change was the early adoption of ASU 2023-08, requiring crypto assets like Bitcoin to be measured at fair value, as of June 30, 2025, the company held 155.5 Bitcoin with a fair value of $16.7 million, the company is involved in ongoing litigation with Uptime Armory over non-delivery of mining equipment, and subsequent to the quarter-end, the company entered an agreement to acquire a new mining site in Mississippi - The company operates two main business segments: Bitcoin mining through its subsidiary US Digital, and a specialty finance business providing funding to nonprofit community associations[18](index=18&type=chunk)[19](index=19&type=chunk) - Effective January 1, 2024, the company early adopted ASU 2023-08, which requires measuring crypto assets at fair value, resulting in a **$614 thousand** cumulative-effect adjustment to beginning accumulated deficit[25](index=25&type=chunk) - The company is in a legal dispute with Uptime Armory and related entities over the non-delivery of **$3.15 million** worth of mining containers and the non-refund of an **$0.8 million** hosting deposit, with the case proceeding to arbitration and the likelihood of recovery being uncertain[114](index=114&type=chunk)[115](index=115&type=chunk) - On August 1, 2025, the company entered into an asset purchase agreement to acquire a mining site in Columbus, Mississippi, with **11 MW** of potential capacity for approximately **$3.9 million**[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q2 2025 revenue decrease of $1.1 million year-over-year primarily to the Bitcoin halving event in April 2024, which reduced the number of Bitcoins mined, although this was partially offset by higher average Bitcoin prices, operating expenses fell sharply by $5.8 million in Q2 2025, mainly due to a $3.8 million gain on the fair value of Bitcoin, for the first six months of 2025, the net loss widened to $5.3 million from $3.7 million in the prior year, the company's liquidity is primarily derived from cash and its Bitcoin holdings, which totaled $12.0 million (excluding collateralized assets) at quarter-end, and management also presents non-GAAP measures like Core EBITDA, which was $2.6 million in Q2 2025 compared to a loss of $2.3 million in Q2 2024 [Results of Operations](index=43&type=section&id=Results%20of%20Operations) For Q2 2025, revenues decreased to $1.9 million from $3.0 million in Q2 2024, driven by a 58% reduction in Bitcoin mined (18.4 vs 44.1) due to the halving, despite a higher average Bitcoin price ($98k vs $66k), operating expenses dropped significantly to $1.5 million from $7.3 million, largely due to a $3.8 million gain on Bitcoin's fair value, leading to a net income of $0.1 million in Q2 2025, versus a $5.6 million net loss in Q2 2024, while for the six-month period, revenues fell to $4.3 million from $7.8 million, and the net loss attributable to the company increased to $5.3 million from $3.7 million Comparison of Operations for the Three Months Ended June 30 | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1.9M | $3.0M | $(1.1)M | | Bitcoin Mined | 18.4 | 44.1 | (25.7) | | Operating Expenses | $1.5M | $7.3M | $(5.8)M | | Net Income (Loss) Attributable to LMFA | $0.1M | $(5.6)M | $5.7M | Comparison of Operations for the Six Months Ended June 30 | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $4.3M | $7.8M | $(3.5)M | | Bitcoin Mined | 42.7 | 130.4 | (87.7) | | Operating Expenses | $9.0M | $11.1M | $(2.1)M | | Net Loss Attributable to LMFA | $(5.3)M | $(3.7)M | $(1.6)M | - The decrease in Bitcoin mining revenue was primarily caused by the halving event in April 2024, which reduced the quantity of Bitcoin mined, and an increased network difficulty rate, partially offset by a significant increase in the average price of Bitcoin[169](index=169&type=chunk)[185](index=185&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash and Bitcoin holdings, with cash at $0.4 million and current Bitcoin holdings valued at $11.7 million as of June 30, 2025, resulting in working capital of $9.3 million, for the first six months of 2025, the company used $5.7 million in cash from operations and generated $3.1 million from investing activities, mainly through Bitcoin sales, with total debt outstanding at $6.6 million as of quarter-end Liquidity Position (in millions) | Component | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $0.4 | $3.4 | | Bitcoin - current portion | $11.7 | $9.0 | | **Total Current Liquidity** | **$12.1** | **$12.4** | - Net cash used in operations was **$5.7 million** for the first six months of 2025, while the company generated **$3.3 million** from selling Bitcoin, which is classified as an investing activity[204](index=204&type=chunk)[205](index=205&type=chunk) - Total debt outstanding was approximately **$6.6 million** as of June 30, 2025, with **$6.5 million** maturing in 2026[208](index=208&type=chunk) [Non-GAAP Financial Measures](index=49&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures such as EBITDA and Core EBITDA to provide additional insight into its operating performance, with Q2 2025 EBITDA at $2.3 million and Core EBITDA at $2.6 million, a significant improvement from the negative figures of ($4.3) million and ($2.3) million, respectively, in Q2 2024, while for the first six months of 2025, Core EBITDA was negative $0.2 million compared to a positive $2.2 million in the prior year period Reconciliation of Net Income (Loss) to Core EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $60.5 | $(6,183.0) | $(5,346.5) | $(3,829.1) | | EBITDA | $2,327.4 | $(4,270.7) | $(821.1) | $130.1 | | Core EBITDA | $2,582.5 | $(2,264.0) | $(242.5) | $2,163.9 | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, LM Funding America, Inc. is not required to provide disclosures for this item - The company is not required to make disclosures under this item as it qualifies as a smaller reporting company[216](index=216&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[218](index=218&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, these controls[219](index=219&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is detailed in Note 7 of the financial statements, which covers commitments and contingencies - Details on legal proceedings are incorporated by reference from Note 7, "Commitments and Contingencies," in Part I, Item 1 of this report[222](index=222&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have been made to the risk factors disclosed in the company's 2024 Form 10-K[223](index=223&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities, no specific use of proceeds from registered offerings, and no repurchases of its securities during the period - The company reported no activity under this item for the period[224](index=224&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, forms of warrants, promissory notes, and officer certifications - The report includes various exhibits, such as the Certificate of Incorporation, By-Laws, forms of warrants, and certifications by the Principal Executive Officer and Principal Financial Officer[228](index=228&type=chunk)

Group 1: Earnings Performance - LM Funding America, Inc. reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.52 per share, and showing improvement from a loss of $1.65 per share a year ago, resulting in an earnings surprise of +103.85% [1] - The company posted revenues of $1.93 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.11%, although this is a decline from year-ago revenues of $3.01 million [2] Group 2: Stock Performance and Outlook - Since the beginning of the year, LM Funding America shares have increased by approximately 10.7%, compared to a 10% gain in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates for the upcoming quarter at -$0.62 on revenues of $2.1 million, and for the current fiscal year at -$2.73 on revenues of $8.8 million [7] Group 3: Industry Context - The Financial - Miscellaneous Services industry, to which LM Funding America belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - For Q2 2025, total revenue was $1,900,000, down from $2,400,000 in Q1 2025, primarily due to lower Bitcoin production and curtailments during peak summer months [11] - The average Bitcoin price in Q2 2025 was approximately $98,100, compared to $93,600 in Q1 2025 [11] - Mining margins improved to 41% in Q2 from 38.5% in Q1, supported by the transition to a lower-cost facility [12] - Net income for Q2 was approximately $60,000, a significant improvement from a net loss of $5,400,000 in Q1 2025 [12] - Core EBITDA for Q2 was $2,600,000, compared to a negative $2,800,000 in Q1 2025 [12] Business Line Data and Key Metrics Changes - The company mined 18.4 Bitcoin in Q2, a slight decrease from Q1 due to miner relocations and curtailments [7] - The strategic transition to a fully integrated model allowed for curtailment and energy sales to generate approximately $223,000 in Q2, offsetting lower Bitcoin production [7] Market Data and Key Metrics Changes - The company ended Q2 with 155.5 Bitcoin valued at $16,700,000, translating to about $3.25 Bitcoin per share based on June 30 prices [8] - By the end of July, Bitcoin holdings decreased to 150.4 Bitcoin valued at $17,800,000, or $3.46 per share [8] Company Strategy and Development Direction - The acquisition of an 11 megawatt Bitcoin mining site in Mississippi for $3,900,000 is expected to enhance the company's capacity to 26 megawatts, accelerating growth and maximizing ROI [5][14] - The company is focused on vertical integration to reduce power costs and optimize fleet efficiency, with plans for further expansion in Oklahoma [9][14] - The company remains committed to its Bitcoin treasury strategy, emphasizing long-term accumulation despite market volatility [15][16] Management's Comments on Operating Environment and Future Outlook - Management expects curtailment revenue to trend lower as seasonal temperatures moderate, leading to increased Bitcoin production and fleet efficiency [15] - The company highlights a disconnect between its balance sheet and market value, with a net book value of $31,900,000 and a fully diluted market cap of $14,700,000 as of June 30 [16] Other Important Information - The company has made progress on a two megawatt immersion-based expansion in Oklahoma, expected to be completed by the end of the year [6] - The company strategically sold a portion of its Bitcoin holdings to support operations and fund expansion projects while maintaining a long-term accumulation strategy [12] Q&A Session Summary Question: Inquiry about the deployment of machines in Mississippi - The company confirmed that the total capacity will be 26 megawatts, with 11.5 megawatts in Oklahoma and 7 megawatts in Mississippi once operational [19][20] Question: Plans for new miner purchases - The company indicated that additional miners will need to be acquired to fill out the capacity in Mississippi, but specifics are not yet determined [21]

Core Insights - LM Funding America, Inc. reported a definitive asset purchase agreement for an 11 MW Bitcoin mining site in Mississippi for $3.9 million, enhancing its operational capacity [1][4] - The company's direct mining margin improved to 41.0% from 38.5% in Q1 2025, driven by increased operational efficiency and power sales [1][4] - The financial results for Q2 2025 showed a GAAP net income of $0.1 million and Core EBITDA of $2.6 million, a significant recovery from a net loss of $5.4 million in Q1 2025 [1][4] Financial Highlights - Total revenue for Q2 2025 was $1.9 million, down 18.7% sequentially and down 36.0% year-over-year [4] - The company mined 18.4 Bitcoins during the quarter, a decrease of 24.3% sequentially, attributed to higher curtailment and downtime from relocating miners [4] - Operating expenses increased by 16.6% year-over-year and 2.5% sequentially to $2.0 million, primarily due to legal and consulting costs related to expansion [4] Operational Highlights - The company relocated approximately 800 hosted miners, completing its hosting exit, and is on track to expand its Oklahoma site by 2 MW later this year [4][5] - The Mississippi acquisition is expected to close on or before September 16, 2025, subject to due diligence [4][5] - The company generated approximately $223,000 in curtailment and energy sales for the quarter, up 49.2% sequentially, contributing to improved mining margins [4][5] Bitcoin Holdings - As of June 30, 2025, the company held 155.5 Bitcoins valued at approximately $16.7 million, with a cash balance of approximately $0.4 million [4][10] - By July 31, 2025, the company held 150.4 Bitcoins valued at approximately $18.0 million based on a Bitcoin price of $120,000 [4][10] Management Commentary - The CEO emphasized the company's commitment to vertical integration and disciplined growth strategy, highlighting operational upgrades and improved mining efficiency [4][5] - The CFO noted that despite a decrease in Bitcoin production, the company's strategies have led to improved direct mining margins and a positive outlook for asset growth [5]

- Bitcoin treasury as of July 31, 2025 valued at $17.8 million or $3.46 per share1 TAMPA, Fla., Aug. 08, 2025 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a Bitcoin mining and technology-based specialty finance company, today announced its preliminary, unaudited Bitcoin mining and operational update for the month ended July 31, 2025. MetricJune 2025July 2025 - Bitcoin2  - Mined, net5.55.9- Sold(5.0)(11.0)- Purchased--- Service Fee--- Bitcoin HODL155.5150.4- Ma ...

Core Viewpoint - LM Funding America, Inc. is set to announce its second quarter 2025 earnings results and will hold a conference call on August 14, 2025, at 8:00 AM EST [1][2]. Group 1: Company Overview - LM Funding America, Inc. operates as a Bitcoin mining and specialty finance company, founded in 2008 and based in Tampa, Florida [3]. - The company will provide an investor presentation alongside its earnings release on the morning of August 14, 2025 [2]. Group 2: Conference Call Details - The conference call will take place on August 14, 2025, at 8:00 AM EST, with links for live webcast and participant registration available [4].

FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 CURRENT REPORT Date of Report (Date of earliest event reported): July 08, 2025 1200 West Platt Street Suite 100 Tampa, Florida 33606 (Address of Principal Executive Offices) (Zip Code) Delaware 001-37605 47-3844457 (Commission File Number) (IRS Employer Identification No.) LM FUNDING AMERICA, INC. (Exact name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation) Registrant's Telephone Number, ...

Core Insights - LM Funding America, Inc. reported a decrease in Bitcoin mined in June 2025, with 5.5 Bitcoin compared to 6.3 Bitcoin in May 2025, attributed to a strategic curtailment approach during peak summer months [2] - The company prioritized energy sales over Bitcoin production due to high temperatures in Oklahoma, resulting in estimated curtailment and energy sales of approximately $55,000 for June and $216,000 for Q2 2025 [2] - As of June 30, 2025, the value of the company's Bitcoin holdings was approximately $16.7 million, equating to $3.25 per share, based on a Bitcoin price of approximately $107,170 [2] Company Overview - LM Funding America, Inc. operates as a Bitcoin mining and specialty finance company, founded in 2008 and based in Tampa, Florida [3] - The company has a total of 5,538 machines as of June 2025, with 4,320 operational and 1,218 in storage [2] - The company's Bitcoin holdings increased slightly from 155.0 to 155.5 Bitcoin from May to June 2025 [2]

Financial Performance - As of March 31, 2025, LM Funding holds 160.2 BTC valued at approximately $13.3 million, equating to $2.59 per share[1][3] - In March 2025, the company mined 8.7 BTC, with a total of 8.0 BTC mined in January and 8.1 BTC in February[2] - The company sold 14.2 BTC in March 2025, with no BTC sold in the previous months[2] - LM Funding generated approximately $130,000 in power sales during Q1 2025 by selling excess energy back to the grid[2] - The stock share price was $1.24 as of March 31, 2025, compared to a Bitcoin price of approximately $83,000[3] Operational Metrics - The total operational machines remained stable at 5,121 throughout the first quarter of 2025[2] - The company's total hashrate was consistent at 0.63 EH/s across January, February, and March 2025[2] Strategic Outlook - LM Funding's balance sheet strength is supported by diversified revenue streams from energy sales and Bitcoin mining[2] - LM Funding plans to continue its infrastructure expansion to enhance operational efficiency and revenue generation[2] Risk Factors - The company faces various risks including operating in the cryptocurrency mining business and changes in governmental regulations[5]