LM Funding America's 2025 Q2 Earnings Call: Unpacking Key Contradictions in Miner Capacity and Utilization

Miner capacity and utilization, purchasing of new miners, planning for new miner purchases, utilization of existing capacity, capacity utilization and machine deployment are the key contradictions discussed in LM Funding America's latest 2025Q2 earnings call



Bitcoin Mining Capacity Expansion:
- LM Funding America signed a definitive purchase agreement to acquire an 11-megawatt Bitcoin mining site in Columbus, Mississippi, increasing its wholly owned U.S. power and Bitcoin mining capacity to 26 megawatts.
- The acquisition is priced at approximately $355,000 per megawatt and is expected to accelerate the company's expansion timeline, maximizing ROI for shareholders.

Profitability Improvement:
- The company reported net income of approximately $60,000 in Q2 2025, compared to a net loss of $5.4 million in Q1 2025 and a $6.2 million loss in Q2 2024.
- Improved profitability was driven by strategic transition to a fully integrated model, curtailment and energy sales, relocation of miners to a lower-cost facility, and increased fleet efficiency.

Strategic Transition to Vertical Integration:
- The completion of LM Funding's third-party hosting exit initiative and relocation of miners to its wholly owned Oklahoma site have provided significant control over operations.
- This transition has led to reduced power costs, elimination of hosting fees, optimized fleet efficiency, and high-margin power sales back to the grid.

Bitcoin Treasury Growth Strategy:
- The company ended Q2 with 155.5 Bitcoin, valued at $16.7 million, and ended July with 150.4 Bitcoin, valued at $17.8 million.
- The growth strategy includes strategic sales to support operations and expansion projects while maintaining a long-term accumulation commitment, showcasing its resilience and disciplined approach.