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

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]