LM Funding reports operational update and Bitcoin holdings

TAMPA, Fla. - LM Funding America, Inc. (NASDAQ:LMFA), a cryptocurrency mining and specialty finance company, has issued a preliminary, unaudited operational update for the month ending August 31, 2024. According to the report, the company's Bitcoin holdings amounted to 135.7 units, valued at approximately $8.7 million based on the Bitcoin price as of September 24, 2024.

The update detailed the company's Bitcoin mining activities, including the net amount of Bitcoin mined each month from the first quarter through August 2024. Over the eight months ending August 31, 2024, LM Funding mined a net total of 142.3 Bitcoins and sold 101.5 Bitcoins. The number of miners deployed and the potential hash rate capacity at the end of each month were also disclosed.

Bruce Rodgers, Chairman and CEO of LM Funding, highlighted the company's progress on key initiatives, such as the expansion of a new 15 MW hosting facility near Oklahoma City. He noted that hosting approximately 3,000 Antminer S19j Pro machines at cost for six months is projected to reduce operating expenses significantly.

The company is also utilizing funds from a recent private placement and a $5 million secured non-convertible loan facility to invest in high-return projects. Rodgers expressed that these strategic investments are expected to accelerate growth and generate meaningful returns for shareholders.

LM Funding America began its Bitcoin mining operations in September 2022 and also operates a technology-based specialty finance business providing funding to nonprofit community associations in several states.

The provided information is based on a press release statement from LM Funding America, Inc. It should be noted that forward-looking statements in the press release are not guarantees of future performance and are subject to various risks and uncertainties. These include the volatile nature of the cryptocurrency mining business, regulatory changes, and market conditions, among others.

In other recent news, LM Funding America revealed a net loss of $6.1 million in its Q2 2024 results. The company's total revenue decreased to $3 million, marking a year-over-year decline of $184,000, while operating expenses rose to $7.8 million. Despite these financial challenges, LM Funding America successfully mined 44.1 Bitcoins and currently holds 160.4 Bitcoins, valued at approximately $10 million.

In a strategic move, LM Funding America announced an agreement with an institutional investor for a registered direct offering and concurrent private placement estimated to raise approximately $2.6 million. The transaction, handled by Maxim Group LLC, involves the sale of common stock and pre-funded warrants, with the closing anticipated around August 19, 2024.

Furthermore, LM Funding America has disclosed plans to acquire a mining site in Texas and establish a hosting facility near Oklahoma City, as part of its efforts to enhance its Bitcoin mining operations. The company has secured a $5 million non-convertible loan to acquire additional miners and for infrastructure expansion. These recent developments indicate a focus on growth and optimization of their Bitcoin mining operations, despite a challenging financial quarter.

InvestingPro Insights

LM Funding America, Inc. (NASDAQ:LMFA) continues to expand its cryptocurrency mining operations, with an impressive holding of Bitcoin and a strategic focus on reducing operating expenses. An analysis using InvestingPro's tools provides additional insights into the company's financial health and market performance.

InvestingPro Data reveals that LMFA has a market capitalization of $7.21 million, which is relatively small in the financial sector, indicating a potential for growth but also a higher risk due to the company's size. The company's Price / Book ratio stands at 0.22 for the last twelve months as of Q2 2024, which is considered low and may suggest the stock is undervalued relative to its assets. Despite an impressive revenue growth of 122.01% during the same period, LMFA's profitability remains a concern, with an operating income margin of -53.13%.

Among the InvestingPro Tips, it's noteworthy that analysts do not anticipate LMFA will be profitable this year and expect a sales decline in the current year. These factors, coupled with a significant cash burn rate, present concerns for potential investors. However, the company's liquid assets exceed its short-term obligations, which can provide some reassurance regarding its ability to meet immediate financial liabilities.

Investors should also be aware that LMFA's stock has fared poorly over the last month, with a 19.57% decline in price. Over the last three months, the decline has been even steeper at 40.87%. Despite these challenges, the company has managed to maintain a positive one-week price total return of 5.28%, reflecting some short-term investor optimism.

For those interested in a deeper analysis, InvestingPro offers additional tips on LMFA, which can be accessed at: https://www.investing.com/pro/LMFA. These tips provide valuable insights that can help investors make more informed decisions.

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