LM FUNDING AMERICA, INC. Q3 FY2025 earnings call

Execution, Integration, and Capital Allocation

• Entered Q3 with momentum from Oklahoma site and growing Bitcoin treasury.
• In August, bolstered balance sheet with $21 million for Bitcoin accumulation, purchased 164 Bitcoin.
• Closed acquisition of 11-megawatt facility in Mississippi, total capacity 26 megawatts.
• In October, repurchased over 3.3 million shares and 7.3 million warrants, announced $1 million stock buyback.
• Secured Bitmain S21 immersion cool machines for Oklahoma site, to come online in December.

Operational Update

• Hash rate increased from 0.48 exahash in June to 0.71 exahash in October, with more growth in December.
• Mississippi facility contributed to production, Bitcoin production increased 28% sequentially from September to October.
• Immersion cooling at Oklahoma site improves efficiency, uptime, and Bitcoin per megawatt.

Revenue for the third quarter was $2.2 million, up approximately 13% sequentially and 74% year over year. Mining margins improved to 49%. At quarter-end, LM Funding held cash and cash equivalents of $300,000 and 304 Bitcoin valued at $34.7 million. Revenue contribution from mining is the primary segment, with the $2.2 million revenue coming from mining operations.

Forward-Looking Statements

• Executed $8 million private share repurchase, reducing share count and improving per-share economics.
• Announced $1.5 million public share repurchase program for opportunistic value trades.
• Expect Bitmain S21 immersion cool machines to come online in December, enhancing efficiency.
• Balance sheet flexibility to support operations, growth, and repurchases while limiting dilution.

Risks

• Forward-looking statements subject to risks and uncertainties; actual results may differ materially.
• Refer to SEC filings with the SEC for a comprehensive discussion of risks, available on sec.gov in the investors section of the website at lmfunding.com/investors.

Q: With about 15% of old machines in storage, are you managing the fleet going forward?

A: Those machines are in the wings; there's build-out capacity available at Mississippi, and they can be quickly deployed once power is available.

Q: Current cost of mining one Bitcoin?

A: Current mining costs for Bitcoin in the most recent quarter was $66,000, down from $70,000 last quarter.