LM FUNDING AMERICA, INC. Q1 FY2025 earnings call

• Transitioned from an asset-like model to a vertically integrated operator since 2021, gaining full control of fleet, improving margins, and reducing operational risks.
• Mined 24.3 Bitcoin in Q1 2025, scaled production capabilities, and improved operational efficiency.
• Monetized curtailment energy sales by selling energy back to the grid during peak demand, creating a natural hedge against Bitcoin price volatility and reducing cost of operations.
• Reduced operating expenses by 7.7% year-over-year through a leaner operational model while maintaining output and efficiency.
• In Q1, achieved 560 petahash, deployed LuxOS upgrades across Oklahoma fleet, and executed first power sales back to the grid.
• Ordered two 1 megawatt immersion mining containers for 2 megawatt expansion of Oklahoma site, expect completion by end of third quarter pending shipping timelines.
• Sold 256 Bitmain S21+ machines due to shift to immersion cooling, anticipating cash-neutral transaction.
• Relocated 800 machines from hosting partner site to wholly-owned Oklahoma site to operate with lower power costs.

In the first quarter of 2025, Bitcoin mining revenue was approximately $2.3 million, up 25% sequentially. The company mined 24.3 Bitcoin. Bitcoin holdings as of March 31, 2025, were 160.2 Bitcoin, valued at $13.2 million. Additionally, the company generated approximately $150,000 from power sales back to the grid in Q1, which contributed to improving mining margins from 31.2% in Q4 2024 to 38.5% in Q1 2025. Revenue from Bitcoin mining declined 50.5% year-over-year largely due to the impact of the prior year.

• Excited about immersion mining expansion in Oklahoma, expecting completion of 2 MW expansion by end of third quarter.
• Seeking to deploy immersion technology at Greenfield and Brownfield sites for 5-20 MW facilities.
• Bullish on Bitcoin and committed to long-term Bitcoin accumulation strategy, noting disparity between Bitcoin holdings value and market cap.
• Believes treating Bitcoin mining sites as power producers with energy sales in Oklahoma provides a sustainable business model.

Q: Talk a little bit more about the Oklahoma site build-out and what you are thinking about currently in Texas?

A: Sure. Texas has got a counterpart issue, so I don't think that there's anything in the short tries and force at this point. Oklahoma, we are up and running, and we will continue to move containers to expand by the year, and that is on the timetable that we discussed earlier, and we'll update you as the quarter progresses.

Q: After that April sales of the S21, so does that take care of all the machines that were in inventory and not plugged in?

A: Taking care of it, I don't know what that means. So, we did sell S21’s and [Technical Difficulty].

Q: For just a 20,000 foot perspective question with the new sites, do you have any geographies in mind targeting the 5 megawatt to 20 megawatt Greenfield, Brownfield build-outs or are you exploring?

A: Michael, the geography, [Technical Difficulty] that’s taking us right now a lot of business in Oklahoma, [Technical Difficulty].