Financial Data and Key Metrics Changes - For Q2 2024, total revenue was approximately $3 million, a decrease of $184,000 from the same period last year [9] - Digital mining revenue was relatively flat at $2.9 million in Q2 2024 compared to $3 million in Q2 2023, impacted by the April 2024 Bitcoin halving event [9] - Operating expenses rose to $7.8 million from $6.4 million year-over-year, primarily due to a $1.3 million loss in Bitcoin fair value and a $1.2 million increase in depreciation and amortization costs [9] - The net loss attributable to shareholders was approximately $6.1 million, compared to a net loss of $4.5 million in the prior year [9] - Core EBITDA loss was $2.2 million in Q2 2024, compared to a loss of $0.1 million in Q2 2023, but positive core EBITDA of $2.2 million was achieved for the first half of 2024 [10] Business Line Data and Key Metrics Changes - The company mined 44.1 Bitcoins in Q2 2024, generating $2.9 million in revenue at an average Bitcoin price of $65,600 [8] - As of June 30, 2024, the company held 160.4 Bitcoins, valued at approximately $10 million [8] Market Data and Key Metrics Changes - The company has approximately 5,900 miners providing a total mining capacity of approximately 639 petahash [8] - The Bitcoin halving event in April 2024 reduced miners' rewards by 50%, impacting revenue generation [7] Company Strategy and Development Direction - The company plans to acquire a mining site in Texas with an initial power capacity of 12 megawatts, aiming to expand to 72 megawatts, projected to yield about 1,000 Bitcoins annually [11] - A partnership with Arthur Mining is established to create a new 15-megawatt hosting facility near Oklahoma City, with potential for a new 60-megawatt site [12] - The company secured a $5 million non-convertible loan to acquire additional miners and enhance mining capabilities [13] - The legacy business providing funding to non-profit community associations is expected to grow due to new Florida laws mandating fully funded building maintenance reserves [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future mining success despite the halving event, highlighting the relocation of miners to cost-effective sites [7] - The focus is on enhancing Bitcoin mining operations in anticipation of the next halving event expected in 2028 [25] Other Important Information - The company is committed to reinvesting mining revenue into purchasing additional cutting-edge miners and integrating sophisticated software and technologies into operations [14] Q&A Session Summary Question: Can you help us get a better read on Texas and Oklahoma just in terms of the build-out? - Management confirmed that both sites will operate using containers, with Texas utilizing immersion containers and Oklahoma using air containers [16] Question: What are you thinking about in terms of power? Are transformers going to be needed at both sites? - Management indicated that transformers are present at both sites, but additional costs will be incurred for further build-out [19] Question: After the 10 months of cost hosting in Oklahoma, what does the deal look like? - Management stated that the hosting will transition to market price after the initial 10 months, with plans to rent the space to others at market rates [21] Question: What is the timeline for transitioning the 3,000 miners? - Management confirmed that the transition took approximately 45 days and all miners are now installed at the new site [22] Question: How will the $5 million loan be allocated? - Management clarified that the loan will be used for both infrastructure and purchasing new machines to support mining capacity [24]
LM Funding America(LMFA) - 2024 Q2 - Earnings Call Transcript