LMFA Q3 2024 Earnings Report
Key Takeaways
LM Funding America, Inc. reported a decrease in revenue to $1.3 million for Q3 2024, primarily due to the Bitcoin halving event and the relocation of mining machines. The company experienced a net loss of $4.8 million. However, the company's vertical integration strategy led to improved gross mining margins.
Mined 18.5 Bitcoins in Q3 2024, generating $1.1 million in revenue.
Held 142.3 Bitcoins as of September 30, 2024, valued at approximately $12.4 million.
Total revenue for Q3 2024 was $1.3 million, a decrease of $2.1 million year-over-year.
Net loss for Q3 2024 was $4.8 million, compared to a net loss of $4.7 million in the same quarter of 2023.
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LMFA Revenue by Segment
Forward Guidance
LM Funding is optimistic about the financial prospects of Bitcoin and its business outlook, focusing on vertical integration and cost-effective mining operations.
Positive Outlook
- Bitcoin recently reached an all-time high above $87,000.
- The company is focused on locations with low-cost power and strong expansion potential.
- Securing lower-cost power sources ($0.003 - $0.005 per MW).
- Relocating miners to more cost-effective operations and expansion opportunities.
- Gross mining margin improvements to 35% for the quarter.
Challenges Ahead
- The company transitioned from an infrastructure-light approach to a vertical integration strategy.
- Revenue decreased due to the anticipated effects of the April 2024 Bitcoin halving event.
- Revenue decreased due to the transition of mining machines to a new hosting site.
- Core EBITDA loss was $1.6 million in Q3 2024.
- Net loss attributable to shareholders of approximately $6.4 million, factoring in a $1.7 million of deemed dividends resulting from warrant repricing and a $0.3 million unrealized loss on securities.