LM Funding America(US:LMFA)2024-11-16 02:08Financial Data and Key Metrics Changes - As of September 30, 2024, the company had approximately 3,700 Bitcoin mining machines in operation, with a total of 5,900 miners providing approximately 639 petahash of mining capacity [11] - Total revenue for Q3 2024 was approximately $1.3 million, a decrease of $2.1 million from the same period last year, attributed to the April 2024 Bitcoin halving event and the repositioning of miners [13] - Operating expenses decreased to $5.6 million from $6.6 million year-over-year, with a core EBITDA loss of $1.6 million in Q3 2024 compared to a loss of $0.6 million in Q3 2023 [14] Business Line Data and Key Metrics Changes - The company mined 18.5 Bitcoins in Q3 2024, generating approximately $1.1 million in revenue at an average Bitcoin price of $61,000 [12] - The company held 142.3 Bitcoins valued at approximately $12.4 million as of November 11, 2024, assuming an $87,000 per Bitcoin price [12] Market Data and Key Metrics Changes - The strategic shift in mining operations post-Bitcoin halving has led to a focus on cost-effective operations and vertical integration, aligning hosting contract expirations with the halving event [9][17] Company Strategy and Development Direction - The company is committed to securing mining sites with low-cost sustainable power sources and significant expansion potential, enhancing operational efficiency and growth [17] - The company plans to reinvest mining revenue into expanding capacity with state-of-the-art miners and integrating advanced software to boost the hash rate of existing machines [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Bitcoin's price trajectory, anticipating it could exceed $100,000 in 2025, especially following a recent surge above $92,000 [43] - The company remains focused on identifying additional cost-effective hosting sites to drive substantial growth and create long-term value for shareholders [19] Other Important Information - The company is exploring potential mergers and acquisitions with privately held mining companies facing challenges due to low hash prices [32] Q&A Session Summary Question: Current mining operations and hash rate expectations - The company has about 3,300 machines in Oklahoma and 800 in Kentucky, operating at approximately 60% capacity [22] Question: Power availability and sustainability - The power rate in Oklahoma is approximately $0.04 per kilowatt, expected to remain stable [35][36] Question: Expansion plans in Oklahoma and Texas - The company is considering expanding its Oklahoma site and is awaiting validation for a potential Texas site [25][37] Question: Insights on the Florida real estate market - Management sees opportunities in the condo business but acknowledges potential delays due to upcoming legislation [28][30] Question: M&A opportunities with privately held mining companies - The company has engaged in discussions with several firms but has not finalized any deals yet [32]