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

1. LMFA signed an agreement to acquire an 11 MW Bitcoin mining site for $3.9 million. 2. Mining margin increased to 41.0%, a positive shift due to operational improvements. 3. GAAP net income was $0.1 million, a significant recovery from Q1's losses. 4. Total revenue dropped to $1.9 million, down 18.7% sequentially. 5. Bitcoin holdings valued at $18 million, showing potential growth amid market volatility.

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Why Bullish?

The acquisition of new mining capacity and improved margins enhance LMFA's outlook. Historically, similar expansions have led to stock price increases as operational efficiencies are realized.

How important is it?

The acquisition is strategically important, directly enhancing capacity and operational efficiency. This positions LMFA favorably in the competitive Bitcoin mining landscape, which aligns with investor interests.

Why Short Term?

The upcoming acquisition and operational improvements are likely to reflect quickly in market performance. Enhanced mining capacity could lead to immediate operational gains.

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- 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, 2025 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 EBITDA1 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 share2, 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 https://www.lmfunding.com/investors. Conference Call Details Date: August 14, 2025 Time: 8:00 AM EST Participant Call Links:  Live Webcast: Link Participant Call Registration: Link  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 https://www.lmfunding.com. 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 www.sec.gov. 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: Investor RelationsOrange GroupYujia ZhailmfundingIR@orangegroupadvisors.com   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.

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