LM Funding America Inc (LMFA) Q3 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Bitcoin Mining Machines: 3,700 in operation, 2,200 awaiting redeployment, totaling 5,900 miners.

  • Mining Capacity: Approximately 639 Petahash.

  • Bitcoins Mined: 18.5 bitcoins in Q3 2024.

  • Revenue from Bitcoin Mining: Approximately $1.1 million at an average Bitcoin price of $61,000.

  • Total Revenue: Approximately $1.3 million for Q3 2024, a decrease of $2.1 million year-over-year.

  • Operating Expenses: Decreased to $5.6 million from $6.6 million year-over-year.

  • Net Loss: $1.6 million in Q3 2024, compared to $0.6 million in Q3 2023.

  • EBITDA: Positive $0.6 million for the first nine months of 2024.

  • Bitcoin Holdings: 142.3 bitcoins valued at approximately $12.4 million as of November 11, 2024.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • LM Funding America Inc (NASDAQ:LMFA) has strategically shifted its mining operations to more cost-effective facilities following the Bitcoin halving event, which is expected to enhance operational efficiency.

  • The company has approximately 3,700 Bitcoin mining machines in operation and an additional 2,200 miners ready to be redeployed, providing a total of 639 Petahash of mining capacity.

  • Operating expenses decreased by $1 million year-over-year, primarily due to a $2 million reduction in digital mining costs.

  • LMFA achieved positive EBITDA for the first nine months of 2024, amounting to $0.6 million, driven by expanded Bitcoin operations.

  • The company is committed to reinvesting mining revenue into expanding capacity with state-of-the-art miners and integrating advanced technologies to boost efficiency.

Negative Points

  • 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, reflecting the impact of the Bitcoin halving event.

  • The company reported a net loss of $1.6 million in Q3 2024, compared to a loss of $0.6 million in Q3 2023.

  • There is uncertainty regarding the expansion of a potential site in Texas, with power validation and expansion plans still pending.

  • The company is operating at 60% capacity due to the relocation of miners, and full deployment of machines is not expected until the end of the year or early January.

  • The Florida real estate market, a segment of LMFA's business, faces legislative uncertainties that may impact future opportunities and demand.

Q & A Highlights

Q: Can you provide details on the current status of your mining operations and future hash rate expectations? A: Richard Russell, CFO: We have about 3,300 machines in Oklahoma and 800 in Kentucky, with 2,200 more in a warehouse in Oklahoma. We aim to have these operational by year-end or early January. Currently, we're at about 60% capacity.