LM Funding America (LMFA 0.42%) reported results for the quarter ended June 30, 2025, on Aug. 14, 2025, highlighting GAAP net income of $60,000 for Q2 2025 compared to a net loss of $6.2 million for Q2 2024. Sequential improvement in core EBITDA to $2.6 million for the quarter ended June 30, 2025, was noted. The company announced a $3.9 million acquisition of a Mississippi Bitcoin (BTC -3.74%) mining site, set to expand total owned capacity to 26 megawatts, as discussed on the Q2 2025 earnings call, alongside ongoing Oklahoma immersion mining initiatives. Key topics include margin expansion, ongoing treasury accumulation, and active capital deployment toward lower-cost integrated mining operations.
LM Funding America accelerates Bitcoin mining expansion with $3.9 million acquisition
With this Mississippi transaction, LM Funding America will increase its owned mining power from 15 megawatts to 26 megawatts upon closing the Mississippi acquisition, as discussed on the Q2 2025 earnings call, assuming latest-generation miners at 15 joules per terahash for approximately 1.7 exahash total capacity. The acquisition price is $355,000 per megawatt, indicating a disciplined approach to capital allocation.
"On August 1, we signed a definitive purchase agreement to acquire an 11-megawatt Bitcoin mining site in Columbus, Mississippi, from Greenidge Generation for $3.9 million or approximately $355,000 per megawatt. The 6.4-acre property comes with low power costs and roughly 7.5 megawatts of mining capacity, along with an additional 3,000 KVA transformer. The acquisition is fully funded from our balance sheet with closing expected on or before September 16, 2025. This acquisition meets our M&A criteria and is precisely the type of attractively priced asset we are targeting. Once closed, this site will increase our wholly owned U.S. power and Bitcoin mining capacity to 26 megawatts, equivalent to approximately 1.7 exahash capacity, assuming latest generation Bitcoin miners at 15 joules per terahash."
-- Bruce Martin Rodgers, Chairman & CEO
This acquisition accelerates fleet scaling without the protracted construction timelines or inflationary risk of new builds.
Mining margin grows as LM Funding America exits third-party hosting and leverages vertical integration
After relocating all remaining miners from a Kentucky co-hosted facility to its Oklahoma site, LM Funding America improved power efficiency and eliminated ongoing hosting fees, increasing mining margin to 41% compared to 38.5% in Q1 2025. Curtailment and energy sales contributed $223,000, up 49% quarter-over-quarter, enhancing downside protection during seasonal production dips.
"A key milestone late in Q2 was the successful relocation of our remaining machines from a hosted facility to our wholly owned Oklahoma site, completing the final step of our third-party hosting exit initiative. Our 2-megawatt Oklahoma expansion is progressing on schedule. The two 1-megawatt immersion containers ordered in April are expected to arrive in the third quarter, and we expect energization later this year."
-- Ryan H. Duran, President, U.S. Digital Mining
Fully self-operated mining enables significant cost control and higher resilience against hosting industry repricing, directly supporting LM Funding America’s margin trajectory and capital return potential.
Bitcoin treasury offers valuation support amid disconnect with market cap
As of June 30, 2025, LM Funding America held 155.5 Bitcoin, valued at $16.7 million, and up to $18 million using prices from July 2025, while the company’s net book value stood at $31.9 million as of June 30, 2025. Both were significantly above its concurrent market capitalization of $14.7 million as of June 30, 2025. The company continues to accumulate Bitcoin, strategically liquidating portions to fund expansion, evidenced by Bitcoin per share increased sequentially from 3.25 at the end of Q2 2025 to 3.46 as of July 2025.
"Our net book value as of June 30 was $31.9 million, our Bitcoin treasury as of June 30 was valued at $16.7 million and $18 million at Monday's Bitcoin prices. Our fully diluted market cap was $14.7 million as of June 30 and $11.8 million as of last Monday's close. We remain committed in our conviction that Bitcoin is the world's premier reserve asset, and we continue to explore strategic opportunities to expand our treasury through innovative financing structures, building upon the playbook we were early to adopt."
-- Bruce Martin Rodgers, Chairman & CEO
The persistent discount of market value to both liquidation value and Bitcoin holdings highlights a margin-of-safety dynamic and potential re-rating catalyst tied to treasury growth or improved market recognition of asset backing.
Looking Ahead
Management reaffirmed that the Mississippi site acquisition is on track to close by Sept. 16, 2025, and expects the 2-megawatt Oklahoma immersion mining deployment to be energized within the year. Guidance calls for lower curtailment sales, along with rising Bitcoin production and fleet efficiency over the remainder of 2025, driven by expanded capacity and the roll-out of immersion systems. No explicit projections for revenue, net income, or EBITDA were provided for upcoming quarters in the transcript.
