An emerging leader in Bitcoin mining Q1 2025 Supplemental Investor Presentation Nasdaq: LMFA Forward-Looking Statements This presentation may contain forward-looking statements the meaning of 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 bu ...

Core Insights - LM Funding America, Inc. reported a total revenue of $2.4 million for Q1 2025, reflecting a sequential increase of 19.4% but a year-over-year decline of 48.9% [4] - The company mined 24.3 Bitcoins during the quarter, achieving a mining revenue of approximately $2.3 million, which is a 25.3% increase sequentially but a 50.1% decrease year-over-year [4][5] - The company held 148.7 Bitcoins valued at approximately $15.5 million as of April 30, 2025, with a market price of around $104,000 as of May 13, 2025 [4] Financial Performance - Operating expenses, excluding direct mining costs and depreciation, decreased by 7.7% year-over-year to $2.0 million [4] - The net loss for the quarter was $5.4 million, with a Core EBITDA loss of $2.8 million, primarily due to a $1.8 million non-cash write-down of Bitcoin [4][12] - Cash reserves were approximately $1.0 million, and total Bitcoin holdings amounted to 160.2 Bitcoins valued at $13.2 million as of March 31, 2025 [4][10] Operational Highlights - The company implemented a power grid integration strategy, generating approximately $150,000 in curtailment and energy sales during the quarter, which contributed to improved mining margins [4][5] - A 2 MW expansion of the Oklahoma Bitcoin mining facility is underway, utilizing immersion cooling technology to enhance efficiency and reduce operational costs [4][5] - The company is relocating its 800 Bitcoin mining machines to its own facility for better operational control and cost management [4][5] Management Commentary - Management emphasized the importance of operational efficiency improvements driven by vertical integration and firmware upgrades, which have positively impacted the bottom line [4][5] - The company remains optimistic about its Bitcoin treasury strategy, which aims to maximize Bitcoin holdings and create long-term value [5]

Core Insights - LM Funding America, Inc. reported a preliminary, unaudited Bitcoin mining and operational update for April 2025, highlighting a decrease in mined Bitcoin due to operational disruptions and a strategic shift towards a vertically integrated model [1][2] Mining Operations - In April 2025, the company mined 6.6 Bitcoin, a decrease from 8.7 Bitcoin in March 2025 and 7.6 Bitcoin in February 2025 [2] - The company sold 18.0 Bitcoin in April 2025, compared to 14.2 Bitcoin in March 2025 [2] - The total Bitcoin holdings decreased to 148.7 Bitcoin by April 30, 2025, valued at approximately $14.1 million based on a Bitcoin price of $94,900 [2] Equipment and Infrastructure - The company maintained 5,121 operational machines and a total of 5,617 machines as of April 2025 [2] - The company is relocating 800 machines to its wholly owned facility in Oklahoma, which generated approximately $120,000 in power sales during April 2025 [2] - Plans for a 2 MW expansion at the Oklahoma site include ordering two 1 MW immersion containers, expected to improve deployment timelines and margins [2] Financial Performance - The company's share price was $1.49 as of April 30, 2025, while the estimated value of Bitcoin holdings was $2.75 per share [2] - The company aims to recover its investment from the sale of recently acquired S21+ miners from Bitmain, preserving capital for higher-return opportunities [2] Upcoming Events - The company will hold its First Quarter 2025 Earnings Call on May 15, 2025, at 8 AM EST [3] - Additional conferences include a Benchmark Virtual Digital Asset Seminar on May 20, 2025, and a conference in Las Vegas on May 28, 2025 [6]

Core Points - LM Funding America, Inc. has scheduled its first quarter 2025 earnings conference call and webcast for May 15, 2025, at 8:00 AM EST [1] - The company will publish its first quarter 2025 results along with an investor presentation on the morning of May 15, 2025, prior to the call [2] - LM Funding operates as a Bitcoin mining and specialty finance company, founded in 2008 and based in Tampa, Florida [3] Conference Call Details - The conference call will take place on May 15, 2025, at 8:00 AM EST [4] - Links for live webcast and participant call registration will be provided [4]

Core Viewpoint - LM Funding America, Inc. has provided a preliminary operational update for its Bitcoin mining activities, highlighting an increase in mined Bitcoin and a strategic focus on energy utilization to enhance operational efficiency [1][3]. Bitcoin Mining Metrics - In March 2025, the company mined a total of 8.7 Bitcoin, an increase from 8.1 Bitcoin in February 2025 and 8.0 Bitcoin in January 2025 [2]. - The company sold 14.2 Bitcoin in March 2025, with no purchases reported during this period [2]. - The Bitcoin holdings as of March 31, 2025, were valued at approximately $13.3 million, equating to $2.59 per share based on a Bitcoin price of approximately $83,000 [3]. Operational Efficiency - The company operates a total of 5,840 machines, with 5,121 machines operational and 719 in storage [2]. - The total hashrate remained consistent at 0.63 EH/s across the months reported [2]. - The company generated approximately $130,000 in power sales during the first quarter of 2025 by selling excess energy back to the grid, which supports its business model [3]. Company Overview - LM Funding America, Inc. is a Bitcoin mining and specialty finance company founded in 2008 and based in Tampa, Florida [4].

Core Viewpoint - LM Funding America, Inc. (LMFA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for LM Funding America indicates expected earnings of -$2.56 per share for the fiscal year ending December 2025, reflecting a year-over-year change of 60% [9]. - Over the past three months, the Zacks Consensus Estimate for LM Funding America has increased by 48.5%, showing a significant upward revision trend [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, making it a reliable tool for investors [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of LM Funding America to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Market Impact - Changes in earnings estimates are strongly correlated with stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [5][6]. - The rising earnings estimates and subsequent rating upgrade for LM Funding America imply an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [6].

Revenue Performance - Total revenues for the year ended December 31, 2024, decreased by approximately $2.0 million to approximately $11.0 million from approximately $13.0 million in 2023[264]. - Bitcoin mining revenues decreased to approximately $10.4 million for the year ended December 31, 2024, down from $12.3 million in 2023[264]. - Specialty finance revenues for the year ended December 31, 2024, were approximately $444,000, representing a decrease of 19.4% compared to approximately $550,000 in 2023[266]. Bitcoin Mining Operations - The company mined 170.6 Bitcoin in 2024 with an average Bitcoin price of approximately $61,000, compared to 423.4 Bitcoin at an average price of approximately $29,000 in 2023[265]. - Bitcoin mining costs of revenues for 2024 were approximately $7.0 million, or 67% of digital mining revenues, compared to approximately $9.4 million, or 77%, in 2023[268]. - The company generated $10.4 million from Bitcoin mining operations in 2024, down from $12.3 million in 2023, with cash used in operations increasing to approximately $11.9 million in 2024 from $3.4 million in 2023[300]. Financial Position - The company held approximately 150 Bitcoin as of December 31, 2024, with a carrying value of approximately $14.0 million, compared to 95 Bitcoin valued at approximately $3.4 million in 2023[252]. - The company had cash and cash equivalents of $3.4 million and digital assets valued at $14.0 million as of December 31, 2024, an increase from $2.4 million and $3.4 million, respectively, as of December 31, 2023[294]. - The company's total outstanding debt as of December 31, 2024, is $6,751,657, an increase from $567,586 in 2023[303]. Loss and Impairment - The company recorded a net loss attributable to common shareholders of approximately $14.1 million for the year ended December 31, 2024, compared to a net loss of approximately $15.9 million in 2023[263]. - The company incurred a $1.4 million impairment loss on mining equipment for the year ended December 31, 2024, compared to nil for the year ended December 31, 2023[277]. - The company incurred $1,379,375 in impairment loss on mining equipment during 2024[306]. Financing and Interest - The company raised $6.9 million in net proceeds from equity financing transactions during the year ended December 31, 2024, compared to nil in 2023[298]. - The company reported an annualized interest expense of $443,700 for the year ended December 31, 2024[306]. - Annualized interest rates on various financing agreements range from 9.35% to 12%[303]. Other Financial Metrics - Core income before interest, taxes, and depreciation for 2024 was $3,940,771, a significant improvement from a loss of $235,800 in 2023[306]. - The company recognized a gain on the fair value of Bitcoin of $7.4 million for the year ended December 31, 2024, compared to nil for the year ended December 31, 2023[274]. - The company recognized an unrealized loss on investment and equity securities of approximately $1.1 million for the year ended December 31, 2024, compared to an unrealized loss of approximately $9.8 million for the year ended December 31, 2023[282]. Debt Obligations - Minimum required principal payments on the company's debt for 2025 are $386,312 and for 2026 are $6,500,000, totaling $6,886,312[303]. - The company paid $709,000 in principal and financing repayments during the year ended December 31, 2024, compared to $624,000 in 2023[303]. Miscellaneous - The company has no off-balance sheet arrangements[308]. - There are no critical accounting estimates for the year ended December 31, 2024[307].

Financial Data and Key Metrics Changes - In 2024, the company mined 170.6% Bitcoin, generating approximately $11 million in revenue and $3.9 million in core EBITDA, indicating strong growth compared to previous periods [11][10] - Total revenue for Q4 2024 was approximately $2 million, a decrease from $4.1 million in Q4 2023, primarily due to the April 2024 Bitcoin halving event [20][21] - Net income attributable to LM shareholders for Q4 2024 was $2 million, an improvement from a net loss of $1.6 million a year ago [22] - Core EBITDA for Q4 2024 increased to $3.3 million, nearly 10 times what was generated a year ago [23] Business Line Data and Key Metrics Changes - The company transitioned to a vertically integrated model, managing its own mining infrastructure, which has improved margins and reduced energy costs [7][9] - The acquisition of a 15 megawatt mining facility in Oklahoma marked a significant operational achievement [16] - The company placed orders for 256 new Bitmain S21 Plus mining machines to enhance fleet efficiency [16] Market Data and Key Metrics Changes - The average Bitcoin price during Q4 2024 was approximately $83,000, while the average price for the full year was approximately $61,000 [20] - As of February 25, 2025, the company expanded its total energized hash rate to 560 petahash per second and held 165.8% Bitcoin on its balance sheet [11] Company Strategy and Development Direction - The company plans to invest in next-generation mining hardware, energy efficiency initiatives, and strategic site acquisitions to support growth [14][26] - The focus remains on acquiring smaller power assets in the 5 to 20 megawatt range, which are often overlooked by larger operators [26][53] - The company aims to leverage Bitcoin-backed debt to capitalize on favorable market conditions [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating industry volatility and emphasized the importance of vertical integration and disciplined cost management [25][13] - The company believes its current market cap relative to Bitcoin holdings presents a compelling investment opportunity [12][13] Other Important Information - The company retained a portion of its mined Bitcoin to capture potential upside for shareholders and deepen alignment with the Bitcoin industry [10] - Cash and Bitcoin holdings increased by 200% in fiscal year 2024, with cash growing 40% to $3.4 million and Bitcoin holdings surging over 300% to $14 million [23] Q&A Session Summary Question: Current operating stats and new machines - The 256 new machines have not yet arrived and will be added once installed [31] Question: Deployment of new machines - There is space to add about two more megawatts, and the new machines will replace less efficient ones [33][35] Question: Timeline for new machines - Groundwork for new containers will take about three weeks, with installation expected within 90 days [38] Question: Opportunities in Texas - The company has looked at several sites in Texas but currently has no outstanding letters of intent [40] Question: Luxor OS2 deployment - Luxor OS2 has been deployed on all machines at the Calumet mining site but not on those at core [42] Question: Secured loan details - The $5 million secured loan is primarily for the new mining site in Oklahoma, with a 12% interest rate for two years [45]

Financial Data and Key Metrics Changes - In 2024, the company mined 170.6% Bitcoin, generating approximately $11 million in revenue and $3.9 million in core EBITDA, indicating strong growth compared to previous periods [11][10] - For Q4 2024, total revenue was approximately $2 million, down from $4.1 million in Q4 2023, primarily due to the April 2024 Bitcoin halving event [20][21] - The net income attributable to LM shareholders for Q4 2024 was $2 million, a significant improvement from a net loss of $1.6 million a year ago [22] - Core EBITDA for Q4 2024 increased to $3.3 million, nearly 10 times what was generated a year ago [23] Business Line Data and Key Metrics Changes - The company transitioned to a vertically integrated model, managing its own mining infrastructure, which has improved margins and reduced energy costs [7][9] - The acquisition of a 15 megawatt mining facility in Oklahoma marked a significant operational achievement [16] Market Data and Key Metrics Changes - The average Bitcoin price during Q4 2024 was approximately $83,000, while the average for the full year was about $61,000 [20] - As of February 25, 2025, the company expanded its total energized hash rate to 560 petahash per second and held 165.8% Bitcoin on its balance sheet [11] Company Strategy and Development Direction - The company plans to invest in next-generation mining hardware, energy efficiency initiatives, and strategic site acquisitions to support growth [14][26] - The focus remains on acquiring smaller power assets in the 5 to 20 megawatt range, which are often overlooked by larger operators [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating industry volatility and emphasized the importance of vertical integration and disciplined cost management for future success [25][13] - The company believes its current market cap presents a compelling value relative to its Bitcoin holdings, which are valued significantly higher than the market cap [12] Other Important Information - The company retained a portion of its mined Bitcoin to capture potential upside for shareholders and deepen alignment with the broader Bitcoin industry [10] - The combined cash and Bitcoin holdings increased by 200% in fiscal year 2024, with cash growing 40% to $3.4 million and Bitcoin holdings surging over 300% to $14 million [23] Q&A Session Summary Question: Current operating stats and new machines - The 256 new machines have not yet arrived and will be added once installed [31] Question: Open sockets and deployment of new machines - There is space to add about two more megawatts, and the new machines will replace less efficient ones [33][35] Question: Timeline for new containers - Groundwork for the new containers is expected to take about three weeks, with installation within 90 days [38] Question: Opportunities in Texas - The company has looked at several sites in Texas but currently has no outstanding letters of intent [40] Question: Deployment of Luxor OS2 - Luxor OS2 has been deployed on all machines at the Calumet mining site but not on those at core [42] Question: Details on the secured loan - The $5 million secured loan is primarily for the new mining site in Oklahoma, structured to avoid liquidating Bitcoin [45]

This presentation includes certain non-GAAP financial measures, such as Core EBITDA. These non-GAAP measures are presented for supplemental information and should not be considered a substitute for financial information presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is set forth in the Appendix to this presentation Overview An emerging leader in Bitcoin mining Q4 2024 Supplemental Investor Presentation Nasdaq: LMFA Forward-Looking ...