Financial Data and Key Metrics Changes - In Q1 2025, the company mined 24.3 Bitcoins at an average price of $93,500, which is a 12% increase in Bitcoin mined sequentially [10] - Bitcoin mining revenue for the quarter was approximately $2.3 million, up 25% sequentially, reflecting improved machine efficiency and infrastructure investments [10] - Year-over-year revenue declined by 50.5% due to the impact of the April 2024 halving [10] - Mining margins improved from 31.2% in Q4 2024 to 38.5% in Q1 2025 [11] - The net loss for the quarter was $5.4 million, with a core EBITDA loss of $2.8 million, impacted by a non-cash write-down of $1.8 million for Bitcoin held [12] - The company finished the quarter with $1 million in cash and Bitcoin holdings valued at approximately $13.2 million as of March 31, 2025 [12] Business Line Data and Key Metrics Changes - The company transitioned to a vertically integrated operator in Bitcoin mining, improving margins and reducing operational risks [5] - The operational efficiency of existing infrastructure was maximized, achieving 560 petahash by March [6] - The company began monetizing curtailment energy sales, generating approximately $150,000 from power sales back to the grid [11] Market Data and Key Metrics Changes - As of April 30, the company held 148.7 Bitcoins, valued at $15.5 million based on a market price of $104,000 per Bitcoin [6] - The calculated value of Bitcoin holdings was approximately $3 per share compared to the stock price of $1.87 on May 13, 2025 [12] Company Strategy and Development Direction - The company is focusing on immersion mining technology, which is expected to enhance operational efficiency and reduce costs [8][14] - Plans to expand the Oklahoma site with two one-megawatt immersion mining containers are underway, with completion expected by the end of Q3 2025 [7] - The company aims to treat Bitcoin mining sites as power producers, leveraging energy agreements to sell curtailed energy back to the grid [14] - A long-term Bitcoin accumulation strategy remains in place, with intentions to add Bitcoin to the balance sheet through debt or equity [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of Bitcoin and the potential for the new immersion mining technology to yield immediate returns [14] - The company is committed to building a sustainable business model that can thrive in various market conditions [14] - Management highlighted the disparity between the value of Bitcoin holdings and market capitalization, indicating potential for shareholder value creation [5][16] Other Important Information - The company has made significant strides in reducing operational costs, with a 7.7% reduction in staff costs, professional fees, and other expenses year-over-year [12] - The strategic decision to sell certain mining machines was made to focus on immersion technology, which is expected to be cash neutral [8] Q&A Session Summary Question: Can you talk about the Oklahoma site build-out and current thoughts on Texas? - Management indicated that there are no immediate plans for Texas due to counterparty issues, while the Oklahoma site is operational and expanding as planned [19] Question: Does the recent sale of S21 machines take care of all machines in inventory? - Management confirmed that the sale addressed some inventory but did not clarify the total impact on net revenue [21] Question: Are there specific geographies targeted for new sites? - Management mentioned that they are exploring opportunities in Oklahoma and Pennsylvania, with potential offerings in Texas [24]
LM Funding America(LMFA) - 2025 Q1 - Earnings Call Transcript