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LM Funding America(LMFA) - 2024 Q4 - Earnings Call Transcript
LMFALM Funding America(LMFA)2025-03-31 14:10
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Financial Data and Key Metrics Changes - In 2024, the company mined 170.6% Bitcoin, generating approximately 11millioninrevenueand11 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 2million,downfrom2 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 2million,asignificantimprovementfromanetlossof2 million, a significant improvement from a net loss of 1.6 million a year ago [22] - Core EBITDA for Q4 2024 increased to 3.3million,nearly10timeswhatwasgeneratedayearago[23]BusinessLineDataandKeyMetricsChanges−Thecompanytransitionedtoaverticallyintegratedmodel,managingitsownmininginfrastructure,whichhasimprovedmarginsandreducedenergycosts[7][9]−Theacquisitionofa15megawattminingfacilityinOklahomamarkedasignificantoperationalachievement[16]MarketDataandKeyMetricsChanges−TheaverageBitcoinpriceduringQ42024wasapproximately3.3 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]−AsofFebruary25,2025,thecompanyexpandeditstotalenergizedhashrateto560petahashpersecondandheld165.861,000 [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]