LM Funding America (NASDAQ:LMFA) used its fourth-quarter earnings call to outline what executives described as a “transformational” 2025, marked by an expanded multi-site bitcoin mining footprint, a larger bitcoin treasury, and efforts to simplify the company’s capital structure.
Chairman and CEO Bruce Rodgers said the company entered 2025 as an early-stage, vertically integrated miner with one wholly owned site and about 150 bitcoin, and exited the year with two owned facilities totaling 26 megawatts of capacity and just over 356 bitcoin as of December 31. Rodgers attributed the growth in holdings to a mix of mining production and “disciplined strategic accumulation,” and noted that the year-end value of the company’s bitcoin holdings was about $31.2 million based on year-end bitcoin prices, including bitcoin held by Galaxy.
Mining operations expanded to two owned sites
In the third quarter, the company acquired an 11-MW bitcoin mining facility in Columbus, Mississippi. Duran said the site added about 7.5 MW of energized capacity and roughly 220 petahash of operating hash rate at acquisition, and comes with power pricing of about $0.036 per kWh. He said October was the first full month of production from the newly integrated Mississippi operation, contributing to a reported increase in bitcoin production from 5.9 BTC in September to 7.5 BTC in October.
For the fourth quarter, Duran said the company operated about 6,850 machines across the two sites. He also pointed to improved uptime in Oklahoma during cooler months compared with earlier periods that saw heavier curtailment.
Immersion program began in Oklahoma
Duran said the company shifted its fourth-quarter focus to “the next efficiency layer,” beginning an immersion-cooling initiative at its Oklahoma site. In December, the company energized its first BC40 Elite immersion-cooled unit, powering 160 Bitmain S21 immersion miners and adding about 35 petahash to energized hash rate.
He added that in January 2026 the company energized a second immersion container for another 35 petahash, and in late February deployed about 300 Bitmain S21 XP miners in Oklahoma, replacing older equipment while reallocating higher-terahash units to Mississippi. As of that late-February update, Duran said total energized hash rate was about 782 petahash, which he called a company record.
On curtailment, Duran said energy sales curtailment totaled about $135,000 in the fourth quarter, down from $150,000 in the third quarter, driven by cooler temperatures and a higher mix of immersion machines requiring less curtailment.
Fourth-quarter revenue rose, but margins compressed
CFO Richard Russell reported fourth-quarter 2025 revenue of $2.4 million, up 8.7% sequentially and up 19% year-over-year. Russell said the sequential increase was driven by higher bitcoin production—22 BTC in Q4 compared with 17.6 BTC in Q3—partially offset by a lower average bitcoin price of about $99,700 in Q4 versus $114,000 in Q3.
Mining margin was 25% in the fourth quarter, down from 49% in the third quarter. Russell attributed the decline primarily to the lower bitcoin price, which reduced revenue per coin against what he described as a relatively fixed cost base. He also said lower curtailment revenue from energy sales was a secondary factor, because it nets against cost of revenues and can pressure reported margins even as it reflects more mining uptime.
Russell initially stated the company posted a net loss of $18.2 million and a core EBITDA loss of $9.4 million in Q4, but later clarified the quarter’s results as a net loss of $17.9 million and a core EBITDA loss of $9.3 million.
He said the quarterly net loss reflected four primary factors:
- A $7.8 million unrealized fair value adjustment tied to a decline in bitcoin price from about $114,000 at September 30 to about $88,000 at December 31
- A non-cash $5.4 million impairment loss on mining equipment in a reduced bitcoin pricing environment
- Depreciation and amortization from the expanded asset base
- Higher operating expenses from the full-quarter integration of the Mississippi facility
Full-year results and balance sheet items
For full-year 2025, Russell reported revenue of about $8.8 million and mining production of about 82.3 bitcoin. Curtailment in energy sales was approximately $658,000 for the year. The company posted a net loss of about $27 million and a core EBITDA loss of $10.9 million.
Russell said year-end bitcoin holdings increased to about 356 bitcoin, including 145 bitcoin reported as a receivable related to the Galaxy Digital loan. He also cited strategic purchases during the year, including 164 bitcoin acquired on August 20, 2025, and 47 bitcoin acquired in December 2025.
On the balance sheet, Russell said total assets were $51.3 million as of December 31, with bitcoin holdings of about $31.2 million classified across current, long-term, and cloud categories. Total liabilities were $22.4 million, which he said primarily consisted of an $11 million Galaxy Digital master digital currency loan and a $7 million short-term note payable.
Russell said the company drew $8 million from the Galaxy facility in October to retire more than 3.3 million shares and 7.2 million warrants, describing the move as intended to improve per-share economics and simplify the capital structure. He added that the company renegotiated the Galaxy facility in February 2026, extending maturity to April 24, 2026.
As of February 28, 2026, Russell said LM Funding held 354.7 bitcoin valued at about $23.8 million, based on a bitcoin price of approximately $67,000, or about $1.11 per share.
2026 priorities: scale production, efficiency, and bitcoin per share
Rodgers said the company’s focus is shifting from “foundation building to scaling,” pointing to ongoing immersion expansion in Oklahoma and steady-state operations in Mississippi. He said early 2026 was tracking toward record monthly production, with February described as the highest production month in company history.
During the Q&A, Maxim Group analyst Matthew Galinko asked whether immersion units would take time to optimize. Duran said the company’s two immersion containers were “maxed out” at about 35 petahash per container with S21 immersion miners, based on what is currently available in the market.
Asked about growth priorities, Duran said the company continues to look for opportunities in the sub-20 MW range and targets power pricing around $0.035 to $0.045 per kWh, including both existing sites and greenfield projects. He also highlighted that the company has “a little over 3 MW” available to build out at the existing Mississippi site.
Rodgers said capital allocation decisions depend on expected long-term impacts on bitcoin holdings, balancing purchases of bitcoin with investments in miners and opportunistic mining acquisitions, while noting that bitcoin price levels can shift near-term decision-making.
About LM Funding America (NASDAQ:LMFA)
LM Funding America, Inc, headquartered in Miami, Florida, is a specialty finance company that provides retail installment contracts to subprime borrowers. The company originates, acquires, and manages motor vehicle retail financing through a network of franchised and independent automobile dealerships across the United States. LM Funding America holds and services its loan portfolio through its wholly owned subsidiary, LM Funding America Service Corp., and offers floorplan financing to new and used vehicle dealers through LM Funding Floorplan LLC.
Established in 2013, LM Funding America completed its initial public offering on the Nasdaq Stock Market in 2015, enabling the company to expand its lending operations and geographic presence.
