LM Funding America (LMFA, Financial) has seen significant benefits from its shift towards a vertically integrated model. In April, the company addressed challenges in cryptocurrency mining, producing 6.6 Bitcoins amidst operational disruptions and the relocation of 800 mining machines to an owned facility in Oklahoma. This site contributed approximately $120,000 in power sales for the month, aiding in reducing mining costs and enhancing profit margins.
Furthering efficiency, LMFA has begun expanding its Oklahoma operations by ordering two 1 MW immersion containers to kickstart a 2 MW enhancement. This strategic move promises quicker implementation, higher profitability, and increased equipment lifespan. As of April 30, 2025, LMFA's Bitcoin holdings reached 148.7, valued at about $14.1 million or $2.751 per share, with Bitcoin priced at roughly $94,900. In contrast, the company's stock was trading at $1.49 per share on that date.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for LM Funding America Inc (LMFA, Financial) is $4.50 with a high estimate of $4.50 and a low estimate of $4.50. The average target implies an upside of 136.84% from the current price of $1.90. More detailed estimate data can be found on the LM Funding America Inc (LMFA) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, LM Funding America Inc's (LMFA, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for LM Funding America Inc (LMFA, Financial) in one year is $2.64, suggesting a upside of 38.95% from the current price of $1.9. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the LM Funding America Inc (LMFA) Summary page.
LMFA Key Business Developments
Release Date: March 31, 2025
- Revenue: Approximately $11 million for the full year 2024; $2 million for Q4 2024.
- Core EBITDA: $3.9 million for the full year 2024; $3.3 million for Q4 2024.
- Net Income: $2 million for Q4 2024, a 220% improvement from a net loss of $1.6 million in Q4 2023.
- Bitcoin Mined: 170.6 Bitcoin in 2024; 21.7 Bitcoin in Q4 2024.
- Bitcoin Holdings: 150.2 Bitcoin as of December 31, 2024; valued at $14.4 million.
- Average Bitcoin Price: $83,000 during Q4 2024; $61,000 for the full year 2024.
- Operational Efficiency: Staff costs, payroll, professional fees, and SGA expenses down 18% year over year.
- Cash Holdings: Increased 40% to $3.4 million in fiscal year 2024.
- Debt Financing: $5 million secured loan backed by Bitcoin collateral.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LM Funding America Inc (LMFA, Financial) achieved profitability in 2024 on a core EBITDA basis, demonstrating effective cost management and strategic planning.
- The company successfully transitioned to a vertically integrated model, managing its own mining infrastructure, which improved margins and operational efficiency.
- LMFA increased its Bitcoin holdings significantly, from 95.1 Bitcoin at the end of 2023 to 150.2 Bitcoin by December 2024, aligning with its long-term strategy.
- The company expanded its total energized hash rate to 560 petahash per second by February 2025, indicating growth in its mining capacity.
- LMFA's market cap is significantly undervalued compared to its Bitcoin holdings, presenting a compelling investment opportunity according to the company's assessment.
Negative Points
- Total revenue for the fourth quarter of 2024 decreased to approximately $2 million from $4.1 million in the same quarter of 2023, primarily due to the Bitcoin halving event and machine relocations.
- The company faces challenges in expanding its infrastructure, with new mining machines yet to be installed and limited space for additional capacity at its current site.
- LMFA's operations are heavily reliant on Bitcoin market conditions, which can be volatile and impact financial performance.
- The company has a $5 million secured loan backed by Bitcoin, which could pose risks if Bitcoin prices fluctuate unfavorably.
- LMFA has no current plans to diversify into AI or other sectors, potentially limiting growth opportunities outside of Bitcoin mining.
