LM Funding America, Inc. Provides Monthly Operational and Bitcoin Mining Update for Month Ended June 30, 2024

Rhea-AI Summary

LM Funding America (NASDAQ: LMFA) provided a preliminary, unaudited Bitcoin mining update for June 2024. Key points include:

• Total Bitcoin holdings: 160.5 BTC (approx. $10.2 million) as of June 30, 2024
• Bitcoin mined in June: 5.4 BTC
• Miners deployed at month-end: 1,878
• Potential hash rate: 639 PH/s

The company ended unfavorable hosting contracts on May 31, 2024, and redeployed about 3,000 miners to a lower-cost site in Oklahoma in July. LMFA is exploring a potential $5 million secured loan to acquire additional miners. The company will revalue its Bitcoin holdings quarterly under new 2024 accounting standards.

Positive

• Redeployment of miners to lower-cost sites, potentially improving profitability
• Potential $5 million loan facility for acquiring additional miners, indicating growth plans
• Maintained substantial Bitcoin holdings valued at approximately $10.2 million

Negative

• Significant decrease in Bitcoin mined from 14.0 in May to 5.4 in June 2024
• Reduction in deployed miners from 5,510 in May to 1,878 in June 2024
• Ongoing process of redeploying miners may impact short-term mining capacity

Insights

Financial Analyst

The update from LM Funding America, Inc. provides key insights into their Bitcoin mining activities and financial positioning. First, the total Bitcoin holdings as of June 30, 2024, were approximately 160.5 BTC, valued at about $10.2 million at the time. This indicates a significant asset base in cryptocurrency, which is subject to high volatility. The company's operational metrics over six months also show a decline in the number of miners deployed from 5,950 in January to 1,878 in June, which may have contributed to the lower Bitcoin production in recent months.

One notable element is the transition of miners to lower-cost hosting sites. This strategic move could potentially reduce operational costs and improve margins. However, the decrease in miners indicates possible operational challenges or reorganization phases that could impact short-term productivity.

The potential secured non-convertible loan facility of up to $5.0 million for acquiring additional miners suggests an intent to scale up operations. While this could be positive if it leads to enhanced mining capacity, it also introduces debt-related risks, especially if Bitcoin prices fluctuate.

Investors should consider both the potential for increased efficiency and growth in mining capacity against the volatility in Bitcoin prices and the risks associated with new debt. The company's ability to manage costs and scale operations efficiently will be critical for long-term success.

Crypto Market Research Analyst

LM Funding America's latest update reveals that they mined 130.5 Bitcoins in the first half of 2024, despite a noticeable reduction in the number of operational miners. This is an impressive feat considering the operational disruptions and strategic repositioning of miners to more cost-effective sites. The deployment of approximately 2,900 mining machines to the Arthur Oklahoma site in July also points to resumed and potentially increased capacity in future months.

Moreover, the reported valuation of their Bitcoin holdings using the new accounting standards, which require revaluation to market value each quarter, aligns with best practices and ensures transparency. This practice will provide investors with a clearer picture of the company's crypto asset valuation in real-time, reducing information asymmetry and enhancing market confidence.

However, the fluctuation in the number of miners and the corresponding hash rate might affect the company's mining efficiency and profitability. The company's strategy to acquire additional miners through a potential secured loan could further bolster their mining capacity but needs to be carefully managed to prevent over-leveraging.

For retail investors, it's essential to understand the inherent volatility of the crypto market and the impact of operational efficiency on the company's ability to generate returns. The company's proactive approach to cost management and strategic redeployment of resources is commendable, yet the outcomes will depend heavily on market conditions and operational execution.

Total Bitcoin holdings were approximately 160.5 BTC as of June 30, 2024, or approximately $10.2 million based on an estimated July 15, 2024, BTC price of $63,750

TAMPA, FL, July 16, 2024 (GLOBE NEWSWIRE) -- LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a cryptocurrency mining and technology-based specialty finance company, today provided a preliminary, unaudited Bitcoin mining update for the month ended June 30, 2024.

Metrics *	One Month January 31, 2024	One Month February 29, 2024	One Month March 31, 2024	One Month April 30, 2024	One Month May 31, 2024	One Month June 30, 2024	Six Months June 30, 2024
Bitcoin Beginning Balance	95.1	126.8	153.6	163.4	155.1	163.1	95.1
Bitcoin Mined, net	31.7	26.8	27.9	24.7	14.0	5.4	130.5
Bitcoin Sold	-	-	(18.0)	(33.0)	(6.0)	(8.0)	(65.0)
Service Fee	-	-	(0.1)	-	-	-	(0.1)
Bitcoin Holdings	126.8	153.6	163.4	155.1	163.1	160.5	160.5
Approximate Miners Deployed at Month End	5,950	5,940	5,940	5,880	5,510	1,878
Approximate Miners In-Transit at Month End					370	4,002
Approximate Potential Hash Rate at Month End (PH/s)	615	614	614	639	639	639

*Unaudited

Effective July 12, 2024, approximately 2,900 mining machines (“Miners”) were installed and deployed at a site in Oklahoma owned and operated by Arthur Mining under our previously announced strategic collaboration with Arthur Mining, while an additional 1,000 Miners that were active at June month-end were moved in July from a different Oklahoma site to a warehouse for redeployment.

Bruce M. Rodgers, Chairman and CEO of LM Funding, stated, "Our mining operations for June 2024 reflect the timely ending of several unfavorable hosting contracts as of May 31, 2024, which allows us to reposition our Miners to lower cost sites. We were able to redeploy and energize approximately 3,000 Miners to the Arthur Oklahoma hosting site in July 2024 and currently anticipate that the remaining Miners will be redeployed to other lower-cost hosting sites over approximately the next four months. In addition, we have entered into a non-binding term sheet with a potential lender regarding a secured non-convertible loan facility of up to $5.0 million that would be used to acquire additional Miners, and if such loan is consummated, it would have a maturity date of 2 years from the closing of the loan.”

The Company estimates that the value of its 160.5 Bitcoin holdings on June 30, 2024, was approximately $10.2 million, based on an estimated June 15, 2024, BTC price of $63,750. However, under the new accounting standards effective for 2024, the Company will revalue its Bitcoin holdings to the quarter-end BTC market value each quarter.

About LM Funding America
LM Funding America, Inc. (Nasdaq: LMFA), together with its subsidiaries, is a cryptocurrency mining business that commenced Bitcoin mining operations in September 2022. The Company also operates a technology-based specialty finance company that provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois, by funding a certain portion of the Associations' rights to delinquent accounts that are selected by the Associations arising from unpaid Association assessments.

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 guaranties 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 www.sec.gov. These risks and uncertainties include, without limitation, uncertainty created by the risks of entering into and operating in the cryptocurrency mining business, uncertainty in the cryptocurrency mining business in general, problems with hosting vendors in the mining business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, the ability to finance and grow our cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, the potential need for additional capital in the future, 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.

Contact:
Crescendo Communications, LLC
Tel: (212) 671-1021

FAQ

How many Bitcoin did LM Funding America (LMFA) mine in June 2024?

LM Funding America (LMFA) mined 5.4 Bitcoin in June 2024.

What was the total Bitcoin holdings of LMFA as of June 30, 2024?

LMFA's total Bitcoin holdings were approximately 160.5 BTC as of June 30, 2024, valued at about $10.2 million based on the estimated BTC price of $63,750 on July 15, 2024.

How many miners did LMFA have deployed at the end of June 2024?

LMFA had approximately 1,878 miners deployed at the end of June 2024.

What is LMFA's plan for redeploying its miners?

LMFA redeployed about 3,000 miners to a lower-cost site in Oklahoma in July 2024 and plans to redeploy the remaining miners to other lower-cost hosting sites over approximately the next four months.