LM FUNDING AMERICA, INC. Q3 FY2024 earnings call

• Following the Bitcoin mining halving in 2024, the company shifted to more cost-effective mining operations, relocating machines from expiring high-cost hosting contracts.
• As of September 30, 2024, there were ~3,700 Bitcoin mining machines in operation and ~2,200 miners in a third-party warehouse. Total mining capacity was ~639 petahash.
• In Q3 2024, 18.5 Bitcoins were mined generating ~$1.1 million in revenue, with total Q3 2024 revenue at ~$1.3 million, down due to the Bitcoin halving and miner repositioning.
• Operating expense decreased y-o-y, but core EBITDA loss widened in Q3 2024; however, positive core EBITDA was achieved for the first nine months of 2024.
• The company adopted a vertical integration strategy post-halving, focusing on securing mining sites with low-cost sustainable power sources and expansion potential.

As of September 30, 2024, the company had approximately 3,700 Bitcoin mining machines in operation and 2,200 miners at a third-party warehouse waiting to be redeployed, totaling 5,900 miners with 639 petahash of mining capacity. In the third quarter of 2024, the company mined 18.5 Bitcoins, generating approximately $1.1 million in revenue. Total revenue for the third quarter of 2024 was approximately $1.3 million, a decrease of $2.1 million from the same period last year. Operating expense for the quarter ended September 30, 2024, decreased to $5.6 million from $6.6 million year-over-year. The core EBITDA loss was $1.6 million in Q3 2024 from $0.6 million in Q3 2023, but positive core EBITDA of $0.6 million was achieved for the first nine months of 2024.

• Believes Bitcoin price may move toward over $100,000 in 2025.
• Hopes to redeploy the 2,200 miners in the Oklahoma warehouse by year-end or early January.
• Uncertainty regarding the Texas project, with a determination expected by year-end on whether it will proceed.
• New rig purchases are based on payback period, evaluating available options and potential deals with Bitmain.

• Uncertainty in the Texas project due to the need for power validation before moving forward.
• Timing uncertainty for the expansion of the Oklahoma site and the Texas project.
• Risks associated with forward-looking statements as outlined in the company's Form 10-K.

Q: Kevin Dede asked about where the miners are located, hash rate by year-end, power in Oklahoma, Texas project progress, new rig purchases, Condo business, and M&A.

A: Richard Russell and Ryan Duran responded, stating miners are in Oklahoma and Kentucky, hope to redeploy 2,200 miners in Oklahoma by year-end, power in Oklahoma is ~$0.04 range, Texas project needs power validation, rig purchases based on payback period, Condo business has opportunities but with some delays, and M&A discussions but no concrete deals yet.

Q: Matthew Galinko asked about power cost in Oklahoma, sustainability, expansion in Oklahoma, and timing if Texas project doesn't proceed.

A: Richard Russell replied power cost is ~$0.04 range, sustainable with projections to stay in that range, Oklahoma site can be expanded with substation expansion, and if Texas project doesn't proceed, will look at ready-to-go sites and continue with Oklahoma expansion