In May, LM Funding (LMFA, Financial) continued its focus on enhancing the output of its mining operations to bolster its Bitcoin treasury strategy. Bruce Rodgers, the company's Chairman and CEO, highlighted that while there was a slight decrease in Bitcoin production due to the transfer of equipment from a Kentucky site to an Oklahoma facility they fully own, the overall Bitcoin holdings increased in both volume and value. By the month's end, LMFA held 155 Bitcoins valued at over $16 million, translating to $3.16 per share.
The company is utilizing revenue from power curtailment activities to mitigate risks associated with energy costs and Bitcoin price volatility. This approach aligns with their strategy to provide a stable, capital-efficient platform for their shareholders, promoting long-term growth in their Bitcoin reserves.
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 135.60% from the current price of $1.91. 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.
LMFA Key Business Developments
Release Date: May 15, 2025
- Bitcoin Mined: 24.3 Bitcoins in Q1 2025.
- Bitcoin Mining Revenue: Approximately $2.3 million, up 25% sequentially.
- Mining Margins: Improved from 31.2% in Q4 2024 to 38.5% in Q1 2025.
- Power Sales Revenue: Approximately $150,000 from power sales back to the grid in Q1 2025.
- Net Loss: $5.4 million for Q1 2025.
- Core Loss: $2.8 million, impacted by a $1.8 million non-cash Bitcoin write-down.
- Bitcoin Holdings: 160.2 Bitcoins valued at $13.2 million as of March 31, 2025.
- Cash Position: $1 million at the end of Q1 2025.
- Operating Expenses: Reduced by 7.7% year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LM Funding America Inc (LMFA, Financial) successfully transitioned to a vertically integrated Bitcoin mining operator, improving margins and reducing operational risks.
- The company mined 24.3 Bitcoin in the first quarter, enhancing production capabilities and operational efficiency.
- LMFA began monetizing curtailment energy sales, creating a natural hedge against Bitcoin price volatility and reducing operational costs.
- The company achieved a significant reduction in operating expenses, contributing to a leaner and more agile business model.
- LMFA's Bitcoin holdings are valued at more than 1.5 times its market capitalization, indicating potential undervaluation of the stock.
Negative Points
- Year-over-year revenue declined by 50.5%, largely due to the impact of the previous year's market conditions.
- The company reported a net loss of $5.4 million for the quarter, driven by a $1.8 million non-cash write-down of Bitcoin.
- Despite improvements, the stock price remains significantly below the calculated value of Bitcoin holdings per share.
- The company faces challenges with international shipping timelines for its expansion projects, potentially delaying growth.
- Technical difficulties during the earnings call highlighted potential communication issues that could affect investor confidence.
