LM FUNDING AMERICA, INC. Q2 FY2025 earnings call

• On August 1, acquired an 11-megawatt Bitcoin mining site in Columbus, Mississippi for $3.9 million, closing expected by September 16, 2025, increasing wholly owned U.S. power and Bitcoin mining capacity to 26 megawatts.
• Made progress on a 2-megawatt immersion-based expansion in Oklahoma, expected to be completed by the end of the year, with immersion cooling offering superior ROI in Oklahoma's climate.
• Relocated approximately 800 miners from a third-party hosting site in Kentucky to the wholly owned site in Oklahoma, replacing S19j Pro miners with S21 and XP next-generation miners, increasing fleet efficiency and reducing power costs by ~40%.
• Curtailment and energy sales generated approximately $223,000 in Q2, helping offset lower Bitcoin production and driving higher mining margins compared to Q1.
• Ended the second quarter with $400,000 in cash and 155.5 Bitcoins valued at $16.7 million as of June 30, 2025.

In the second quarter of 2025, total revenue was $1.9 million, down from $2.4 million in Q1 2025. This decline was due to lower Bitcoin production from curtailments in peak summer months and miner relocation, partially offset by higher Bitcoin prices. Curtailment and energy sales increased to approximately $223,000 in Q2 2025 from $150,000 in Q1 2025. Mining margins improved to 41% in Q2 from 38.5% in Q1. The company ended the second quarter with 155.5 Bitcoins valued at $16.7 million.

• The acquisition in Columbus, Mississippi is fully funded from the balance sheet, positioning for accelerated growth with up to 26 megawatts of owned capacity.
• The Oklahoma immersion mining deployment is on track for energization later in 2025, with immersion cooling expected to improve margins through higher efficiency and longer equipment life.
• Expect curtailment revenue to trend lower as seasonal temperatures moderate and immersion systems are energized, with Bitcoin production and fleet efficiency increasing, improving cost per Bitcoin and uptime.
• Continuing to search for accretive M&A opportunities in the 5- to 20-megawatt range.

[]

Q: After discussing deploying machines in storage for the 7.5 megawatts in operation in Mississippi, how many megawatts would still be free?

A: The top number is 26 megawatts of capacity. With 11.5 megawatts in Oklahoma when complete and 7 megawatts in Mississippi once owned, more miners will be needed to fill out the capacity.

Q: Thoughts on new miner purchases?

A: The Mississippi transaction isn't complete regarding miners yet. The company will acquire additional miners to fill out all the capacity.