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LM Funding America, Inc. Reports Second Quarter 2025 Financial Results

- Definitive asset purchase agreement for 11 MW Bitcoin mining site in Mississippi - Direct mining margin improved to 41.0% from 38.5% in Q1 2025 - $0.1 million GAAP net income and $2.6M Core EBITDA, up from sequential $5.4 million net loss and $2.8 million negative Core EBITDA in Q1 2025, respectively - Held 150.4 Bitcoin on July 31, 202 5 valued at approximately $ 18.0 million, as of August 11, 2025 TAMPA, Fla., Aug. 14, 2025 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) ('LM Funding' or the 'Company'), a Bitcoin mining and technology-based specialty finance company, today reported financial results for the three months ended June 30, 2025. Q2'25 Financial Highlights Total revenue for the quarter was $1.9 million dollars, down 18.7% sequentially from Q1 2025 and down 36.0% year-over-year. The Company mined 18.4 Bitcoins during the quarter, down 24.3% sequentially, at an average price of approximately $98,100. The sequential decline was due to higher curtailment as a result of peak summer months and downtime due to the relocation of approximately 800 miners from a third party hosting site to the Company's wholly-owned site in Oklahoma. The Company generated approximately $223,000 in curtailment and energy sales for the quarter, up 49.2% sequentially. Mining margin improved to 41.0%, compared with 38.5% in the first quarter 2025, driven by the power sales offsetting digital mining cost of revenues and increased operational efficiency from the Company's vertical integration strategy. Operating expenses, including staff costs & payroll, professional fees, SG&A and other operating costs, increased by 16.6% year-over-year and 2.5% sequentially to $2.0 million driven by increased legal and consulting costs tied to expansion initiatives and staffing costs for Oklahoma site. Net income for the quarter was $0.1 million and Core EBITDA 1 was $2.6 million, both driven by a $3.8 million gain on fair value of Bitcoin held on the balance sheet as of June 30, 2025. Cash was approximately $0.4 million and Bitcoin holdings totaled 155.5 Bitcoin, valued at $16.7 million based on Bitcoin price of approximately $107,170, as of June 30, 2025. Net book value of LM Funding stockholders' equity was approximately $31.9 million, or $6.21 per share 2, as of June 30, 2025. As of July 31, 2025 the Company held 150.4 Bitcoin, valued at approximately $18.0 million, based on a Bitcoin price of $120,000 as of August 11, 2025. Q2'25 and Recent Operational Highlights Mississippi 11 MW acquisition: On August 1, 2025 LM Funding announced it entered into a definitive asset purchase agreement to acquire a 6.4-acre Bitcoin mining site in Mississippi with an anticipated 11 MW interconnect from Greenidge Generation Holdings Inc. ('Greenidge') for $3.9 million in cash. The purchase includes the real property and onsite power infrastructure—including a 3,000 kVA transformer relocated to the parcel, with 7.5 MW operational. Closing is targeted on or before September 16, 2025, subject to customary due diligence and other conditions. Oklahoma 2 MW expansion: The project remains on track to be energized later this year, with immersion containers expected to be delivered in Q3 2025. This expansion positions the Company to add 2 MW of capacity and benefit from immersion cooling's improved thermal performance and operational stability in high-heat conditions. Power grid integration strategy: In the second quarter, the Company generated $223,000 in curtailment and energy sales by selling power back to the grid during peak demand periods. This amount was applied as a reduction to digital mining cost of revenue, contributing in part to the improvement in mining margins from 38.5% in the first quarter 2025 to 41.0% in the second quarter 2025. The initiative continued to gain momentum, with July 2025 curtailment and energy sales reaching approximately $66,000. This approach continues to allow the Company to maximize the value of its power sites and create a partial hedge against Bitcoin price volatility. Management Commentary 'We continue to advance our vertical integration and disciplined growth strategy,' commented Bruce Rodgers, Chairman and CEO of LM Funding. 'In the second quarter, we relocated approximately 800 hosted, next-generation miners, completing the final step of our hosting exit. In addition, our 2 MW immersion mining expansion at our Oklahoma site is on track for energization later this year. Further, on August 1st, we signed a definitive purchase agreement to acquire an 11 MW Bitcoin mining site in Mississippi from Greenidge for $3.9 million or about $355,000 per MW—giving us a clear path to as much as 26 MW of owned capacity. This purchase will be fully funded by our balance sheet.' 'Our Q2 results highlight the operational upgrades we've implemented and the benefits of our vertically integrated strategy,' commented Richard Russell, CFO of LM Funding. 'Even though Bitcoin production decreased sequentially due to peak-summer-related curtailments and the relocation of our remaining hosted miners, our increased mining efficiency and power sales strategy improved our direct mining margins sequentially to 41.0% from 38.5%. Further, we recorded $0.1 million of GAAP net income and $2.6 million of Core EBITDA for the quarter. Given our disciplined cost structure and targeted growth initiatives, we are confident in our ability to steadily grow our asset base, specifically our Bitcoin Treasury, over time, creating long-term value for our shareholders.' Investor Conference Call LM Funding will host a conference call today, August 14, 2025, at 8:00 A.M. Eastern Time to discuss the Company's financial results for the quarter ended June 30, 2025, as well as the Company's corporate progress and other developments. A copy of this earnings release and investor presentation are available on the Company's Investor Relations website at Conference Call Details About LM Funding America LM Funding America, Inc. (Nasdaq: LMFA), operates as a Bitcoin mining and specialty finance company. The company was founded in 2008 and is based in Tampa, Florida. For more information, please visit Forward-Looking Statements This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'plan,' and 'project' and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company's most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at These risks and uncertainties include, without limitation, the risks of operating in the cryptocurrency mining business, our limited operating history in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, our ability to identify and acquire additional mining sites, the ability to finance our site acquisitions and cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, changes in governmental regulations that affect our ability to collected sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations. For investor and media inquiries, please contact: LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Balance Sheets June 30, December 31, 2025 (unaudited) 2024 Assets Cash $ 353,580 $ 3,378,152 Digital assets - current (Note 2) 11,677,773 9,021,927 Finance receivables 26,120 21,051 Marketable securities (Note 5) 13,230 27,050 Receivable from sale of Symbiont assets (Note 5) - 200,000 Prepaid expenses and other assets 597,136 827,237 Income tax receivable 31,187 31,187 Current assets 12,699,026 13,506,604 Fixed assets, net (Note 3) 14,517,943 18,376,948 Intangible assets, net (Note 3) 5,369,012 5,478,958 Deposits on mining equipment (Note 4) 483,592 467,172 Long-term investments - equity securities (Note 5) 4,111 4,255 Investment in Seastar Medical Holding Corporation (Note 5) 44,060 200,790 Digital assets - long-term (Note 2) 5,000,000 5,000,000 Right of use assets (Note 7) 842,268 938,641 Other assets 73,857 73,857 Long-term assets 26,334,843 30,540,621 Total assets $ 39,033,869 $ 44,047,225 Liabilities and stockholders' equity Accounts payable and accrued expenses 1,530,077 989,563 Note payable - short-term (Note 6) 1,643,759 386,312 Due to related parties (Note 9) 21,393 15,944 Current portion of lease liability (Note 7) 187,139 170,967 Total current liabilities 3,382,368 1,562,786 Note payable - long-term (Note 6) 4,907,873 6,365,345 Lease liability - net of current portion (Note 7) 619,442 776,535 Long-term liabilities 5,527,315 7,141,880 Total liabilities 8,909,683 8,704,666 Stockholders' equity (Note 8) Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of June 30, 2025 and December 31, 2024 - - Common stock, par value $.001; 350,000,000 shares authorized; 5,133,412 shares issued and outstanding as of June 30, 2025 and December 31, 2024 4,602 4,602 Additional paid-in capital 102,814,611 102,685,470 Accumulated deficit (70,960,851) (65,662,731) Total LM Funding America stockholders' equity 31,858,362 37,027,341 Non-controlling interest (1,734,176) (1,684,782) Total stockholders' equity 30,124,186 35,342,559 Total liabilities and stockholders' equity $ 39,033,869 $ 44,047,225 LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Operations Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenues: Digital mining revenues $ 1,806,364 $ 2,893,073 $ 4,080,304 $ 7,490,981 Specialty finance revenue 94,945 89,036 162,334 205,664 Rental revenue 27,015 29,238 57,023 62,306 Total revenues 1,928,324 3,011,347 4,299,661 7,758,951 Operating costs and expenses: Digital mining cost of revenues (exclusive of depreciation and amortization shown below) 1,288,399 2,357,111 2,836,694 5,012,057 Curtailment and energy sales (223,269) - (372,955) - Staff costs and payroll 1,087,627 837,888 2,138,104 2,080,914 Depreciation and amortization 2,039,343 1,875,359 4,076,921 3,851,555 Loss (gain) on fair value of Bitcoin, net (3,761,139) 1,265,485 (1,951,163) (2,992,030) Impairment loss on mining equipment - - - 1,188,058 Professional fees 308,829 484,335 673,314 994,228 Selling, general and administrative 375,420 195,681 685,384 373,587 Real estate management and disposal 22,420 31,097 58,734 58,286 Collection costs 8,589 20,416 25,941 21,342 Settlement costs with associations - - 3,693 - Loss on disposal of assets 99,578 33,887 286,359 42,057 Other operating costs 259,012 223,112 514,960 437,617 Total operating costs and expenses 1,504,809 7,324,371 8,975,986 11,067,671 Operating income (loss) 423,515 (4,313,024) (4,676,325) (3,308,720) Unrealized gain (loss) on marketable securities (5,110) 6,440 (13,820) 4,280 Unrealized loss on investment and equity securities (130,890) (1,856,737) (156,874) (505,758) Gain (loss) on fair value of purchased Bitcoin, net - - (52,704) 57,926 Other income - coupon sales - - - 4,490 Interest expense (227,546) (36,893) (448,452) (107,719) Interest income 531 17,228 1,676 26,353 Income (loss) before income taxes 60,500 (6,182,986) (5,346,499) (3,829,148) Income tax expense - - - - Net income (loss) $ 60,500 $ (6,182,986) $ (5,346,499) $ (3,829,148) Less: loss attributable to non-controlling interest 40,054 574,474 48,379 160,253 Net income (loss) attributable to LM Funding America Inc. $ 100,554 $ (5,608,512) $ (5,298,120) $ (3,668,895) Basic income (loss) per common share (Note 1) $ 0.02 $ (2.26) $ (1.03) $ (1.49) Diluted income (loss) per common share (Note 1) $ 0.02 $ (2.26) $ (1.03) $ (1.49) Weighted average number of common shares outstanding Basic 5,133,412 2,485,822 5,133,412 2,457,012 Diluted 5,133,412 2,485,822 5,133,412 2,457,012 LM Funding America, Inc. and Subsidiaries Unaudited Consolidated Statements of Cash Flows Six months ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (5,346,499) $ (3,829,148) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 4,076,921 3,851,555 Noncash lease expense 96,373 52,579 Amortization of debt issue costs 42,528 - Stock compensation - 76,322 Stock option expense 135,426 221,609 Accrued investment income - (25,265) Accrued interest expense on finance lease 30,553 - Digital assets other income - (4,490) Gain on fair value of Bitcoin, net (1,898,459) (3,049,956) Impairment loss on mining machines - 1,188,058 Unrealized loss (gain) on marketable securities 13,820 (4,280) Unrealized loss (gain) on investment and equity securities 156,874 505,758 Loss on disposal of fixed assets 286,359 42,057 Change in operating assets and liabilities: Prepaid expenses and other assets 398,424 3,218,789 Repayments to related party 5,449 30,730 Accounts payable and accrued expenses 540,514 (718,557) Mining of digital assets (4,080,304) (7,490,981) Lease liability payments (171,474) (53,044) Net cash used in operating activities (5,713,495) (5,988,264) CASH FLOWS FROM INVESTING ACTIVITIES: Net collections of finance receivables - original product (2,434) (14,443) Net collections of finance receivables - special product (2,635) (631) Capital expenditures (377,212) (1,226,602) Proceeds from sale of fixed assets 953,153 78,806 Investment in notes receivable - (2,094,351) Collection of note receivable 200,000 1,449,066 Investment in digital assets - tether (30,315) - Proceeds from sale of Bitcoin 3,323,773 4,543,685 Proceeds from the sale of tether 29,460 - Deposits for mining equipment (986,690) - Distribution to members (1,015) (19,616) Net cash provided by investing activities 3,106,085 2,715,914 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings - 1,500,000 Insurance financing repayments (410,877) (483,833) Issuance costs (6,285) - Net cash provided by (used in) financing activities (417,162) 1,016,167 NET DECREASE IN CASH (3,024,572) (2,256,182) CASH - BEGINNING OF PERIOD 3,378,152 2,401,831 CASH - END OF PERIOD $ 353,580 $ 145,648 SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES Insurance financing $ 168,324 $ - Change in accounting principle (see Note 1) $ - $ 614,106 SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION Cash paid for taxes $ - $ - Cash paid for interest $ 337,850 $ 134,751 NON-GAAP CORE EBITDA RECONCILIATION Our reported results are presented in accordance with U.S. generally accepted accounting principles ('GAAP'). We also disclose Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA") and Core Earnings before Interest, Tax, Depreciation and Amortization ("Core EBITDA") which adjusts for unrealized loss (gain) on investment and equity securities, loss on disposal of mining equipment, impairment loss on mining equipment and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners. The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net income (loss) $ 60,500 $ (6,182,985) $ (5,346,499) $ (3,829,148) Income tax expense - - - - Interest expense 227,546 36,893 448,452 107,719 Depreciation and amortization 2,039,343 1,875,359 4,076,921 3,851,555 Income (loss) before interest, taxes & depreciation $ 2,327,389 $ (4,270,734) $ (821,126) $ 130,126 Unrealized loss on investment and equity securities 130,890 1,856,737 156,874 505,758 Loss on disposal of mining equipment 99,578 33,887 286,359 42,057 Impairment loss on mining equipment - - - 1,188,058 Stock compensation and option expense 24,621 116,080 135,426 297,931 Core income (loss) before interest, taxes & depreciation $ 2,582,478 $ (2,264,030) $ (242,467) $ 2,163,930 _______________________ 1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below. 2 Calculated using 5,133,412 shares outstanding as of June 30,2025.