LM FUNDING AMERICA, INC. Q4 FY2024 earnings call

• Transitioned to a vertically integrated model with an inaugural 15 megawatt site in Oklahoma, reducing fleet-wide energy costs and improving operations.
• In 2024, mined 170.6 Bitcoin and retained more Bitcoin on the balance sheet for long-term strategy.
• In Q4 2024, mined 21.7 Bitcoins, had fourth quarter net income attributable to LM shareholders at $2 million (a over 220% improvement vs prior year loss), and core EBITDA increased to $3.3 million.
• Placed orders for 256 new Bitmain S21 plus mining machines, partnered with Luxor Technology for firmware upgrade to increase mining efficiency by 10%-15%.
• Maintained disciplined OPEX control, with staff costs, payroll, professional fees, and SG&A expenses down 18% year-over-year in Q4 2024.

In 2024, LM Funding America's Bitcoin mining segment mined 170.6 Bitcoin, generating approximately $11 million of revenue and $3.9 million in core EBITDA. For the fourth quarter of 2024, they mined 21.7 Bitcoins, with total revenue at approximately $2 million (compared to $4.1 million in Q4 2023). The average Bitcoin price in the fourth quarter of 2024 was approximately $83,000, and for the full year 2024 was approximately $61,000. On the balance sheet, cash grew 40% to $3.4 million in fiscal year 2024, and Bitcoin holdings surged over 300% to $14 million, with 150.2 Bitcoin held at December 2024 and 165.8 at the end of February 2025.

• Focus on vertical integration, disciplined cost management, and strategic infrastructure expansion.
• Plan to invest in next generation mining hardware, energy efficiency initiatives, and strategic site acquisitions.
• Target to acquire greenfield and brownfield power assets in the 5 megawatts to 20 megawatt range.
• Leverage Bitcoin backed debt when favorable to capitalize on positive arbitrage compared to traditional USD loans.

• Forward-looking statements are subject to risks and uncertainties where actual results may differ materially.
• Market volatility, including fluctuations in Bitcoin prices, which can impact revenue and profitability.
• Operational risks associated with mining infrastructure, such as uptime and efficiency of mining machines.
• Regulatory risks related to the digital asset sector which could affect operations.

Q: Could you confirm if the 256 new machines are included in the 560 petahash?

A: Those new machines have not yet arrived; they'll be added once installed.

Q: Update on opportunities in Texas?

A: Had a couple of sites looked at in Texas, with a couple of LOIs presented but none currently outstanding in Texas.

Q: Deployment of Luxor OS and its use on S21s?

A: Deployed on all machines at the Calumet mining site, and can be run on S21s as well.

Q: Details on the secured loan?

A: $5 million secured loan used to help pay for the Oklahoma mine site, 12% for two years, can be refinanced or paid off with higher Bitcoin balances.

Q: Pipeline for new data center and power assets?

A: Looking at 2-15 megawatt assets, focusing on favorable electricity prices and contract terms, with interest in smaller contracts left by larger operators.

Q: AI opportunity?

A: Focused on Bitcoin, no plans to diversify into AI due to lack of capital, customer reach, and experience in running AI facilities