LM Funding America Reports 50% Revenue Decline and Increased Operating Losses

LM Funding America, Inc. reported significant financial challenges in its latest quarterly filing for the period ending March 31, 2025. The company recorded total revenues of $2.37 million, a decrease of approximately 50% from $4.75 million in the same period last year. This decline was primarily driven by a substantial drop in digital mining revenues, which fell to $2.27 million from $4.60 million, attributed to a reduction in the number of Bitcoins mined following the halving event in April 2024 and increased mining difficulty. The average price of Bitcoin mined during the quarter was approximately $94,000, compared to $53,000 in the prior year.

Operating expenses surged to $7.47 million, up from $3.74 million in the previous year, leading to an operating loss of $5.10 million compared to an operating income of $1.00 million in the prior year. The increase in expenses was largely due to a fair market adjustment on mined digital assets, which resulted in a loss of $1.81 million, contrasting with a gain of $4.26 million in the previous year. Additionally, the company incurred a loss on the disposal of mining equipment and recognized higher interest expenses due to increased borrowings.

In terms of operational metrics, LM Funding America reported a total of 5,600 mining machines with a combined hashing capacity of approximately 612 petahash per second. The company mined 24.3 Bitcoins during the quarter, a significant decrease from 86.4 Bitcoins mined in the same quarter of the previous year. The company’s cash position also deteriorated, with cash and cash equivalents dropping to $1.03 million from $3.38 million at the end of the previous fiscal year. The total assets decreased to $39.12 million from $44.05 million, reflecting a decline in digital assets and marketable securities.

Looking ahead, LM Funding America faces challenges in maintaining liquidity and operational efficiency amid a volatile Bitcoin market. The company has indicated that it will continue to monitor market conditions closely and may need to curtail operations if energy prices exceed the value of Bitcoin mined. The management remains focused on enhancing operational efficiencies and exploring potential financing options to support its business strategy. The outlook remains cautious as the company navigates the complexities of the cryptocurrency market and its impact on financial performance.