LM Funding America's Q4 Earnings Call: Mississippi Expansion vs. Acquisition Hesitation, Hash Rate Capacity Claims Clash

Date of Call: Mar 27, 2026

Financials Results

• Revenue: $2.4M for Q4, up 8.7% sequentially and up 19% year-over-year; full year $8.8M.
• EPS: Net loss of $18.2M for Q4; full year net loss of $27M.
• Gross Margin: Mining margin of 25% for Q4, compared to 49% in Q3 2025.

Business Commentary:

Infrastructure and Capacity Expansion:

• LM Funding America completed the acquisition of an 11-MW site in Columbus, Mississippi, bringing their total owned capacity to 26 MW across two facilities.
• The expansion was aimed at building a multi-site, vertically integrated platform to support future growth.

Bitcoin Holdings and Treasury Growth:

• The company grew its Bitcoin holdings from approximately 150 Bitcoin at the end of 2024 to 356 Bitcoin by December 2025, more than doubling the holdings.
• This growth resulted from a combination of mining production and strategic accumulation.

Operational Efficiency and Production Increase:

• In Q4, LM Funding America mined 22 Bitcoin, a 25% increase from Q3's 17.6 Bitcoin, driven by improved uptime and the integration of the Mississippi site.
• The operational efficiency was enhanced by cooler operating conditions and a higher mix of immersion machines.

Financial Performance and Challenges:

• Q4 2025 reported a net loss of $17.9 million and a core EBITDA loss of $9.3 million, attributed to mark-to-market losses, equipment impairment, and integration costs.
• Despite financial challenges, the company highlighted strategic progress in infrastructure and treasury growth.

Sentiment Analysis:

Overall Tone: Positive

• Management describes 2025 as a 'transformational' year, exiting with a 'stronger operational platform, larger Bitcoin holdings, and a more aligned capital structure.' They state the company is now 'operating at record highs in energized hash rate, Bitcoin production, and overall fleet efficiency' and express confidence that 'as the Bitcoin market recovers, we believe our strengthened platform and enhanced economies of scale will deliver strong value to our shareholders.'

Q&A:

• Question from Matthew Galinko (Maxim Group): Will it take time to optimize production from the immersion cooled units, or are you kind of just right out of the gate where you want to be?
  Response: Production from immersion units is maxed out immediately with the best available miners.

• Question from Matthew Galinko (Maxim Group): As far as your pipeline for new site acquisition versus existing site expansion, can you maybe just go through how those two buckets look?
  Response: The company is always looking for sites under 20 MW with target power pricing, with an immediate focus on expanding the existing Mississippi site.

• Question from Matthew Galinko (Maxim Group): How does your current discount to NAV influence how you think about funding new site acquisition and miner acquisition?
  Response: The strategy is to project future Bitcoin price and back into spending targets; current low Bitcoin price makes some thinking more reactive, focusing on opportunities that fit future growth.

Contradiction Point 1

Focus on Site Expansion versus Greenfield Acquisitions

It directly impacts expectations regarding the company's geographic and operational growth strategy, potentially influencing future capacity and market position.

Matthew Galinko (Maxim Group) - Matthew Galinko (Maxim Group)

2025Q4: The current focus includes expanding the existing Mississippi site, which has over 3 MW of additional capacity already secured. - Ryan Duran(CFO)

How does the pipeline for new site acquisition compare to existing site expansion? - Matthew Galinko (Maxim Group LLC)

2025Q3: While **site acquisitions are always explored**, the current focus is on integrating and optimizing existing assets. - Bruce Rodgers(CEO)

Contradiction Point 2

Capital Allocation Strategy

It involves changes in financial strategy for funding acquisitions, which are critical for understanding how the company plans to grow and manage resources.

Matthew Galinko (Maxim Group) - Matthew Galinko (Maxim Group)

2025Q4: The capital allocation strategy is dynamic and based on projections of Bitcoin's future price. When Bitcoin is below forecasted targets, the focus leans heavily toward increasing the Bitcoin treasury and acquiring miners... - Bruce Rodgers(CFO)

How does your current discount to NAV influence your approach to funding new site and miner acquisitions, as well as capital spending and hash rate expansion? - Matthew Galinko (Maxim Group LLC)

2025Q3: The allocation decision balances the **price of Bitcoin**, the **cost of mining infrastructure**, and a **long-term (5-year) pro forma view** of future values. - Bruce Rodgers(CFO)

Contradiction Point 3

Site Capacity and Expansion Plans

It reflects inconsistencies in the reported capacity and expansion status of key sites, affecting expectations for future production and operational scale.

Matthew Galinko (Maxim Group) - Matthew Galinko (Maxim Group)

2025Q4: The current focus includes expanding the existing Mississippi site, which has over 3 MW of additional capacity already secured. - Ryan Duran(CEO)

What is the status of your pipeline for new site acquisitions versus existing site expansions? - Michael John Donovan (H.C. Wainwright & Co, LLC, Research Division)

2025Q2: The total capacity will be 26 megawatts, combining the expansions in Oklahoma and Mississippi. Once the Mississippi acquisition is complete, additional miners will need to be acquired to fill all the capacity. - Bruce Rodgers(CFO)

Contradiction Point 4

Strategic Focus on New Site Acquisition and Expansion

It involves a shift in geographic priorities, which could significantly alter the company's growth trajectory and resource allocation.

Matthew Galinko (Maxim Group) - Matthew Galinko (Maxim Group)

2025Q4: The current focus includes expanding the existing Mississippi site, which has over 3 MW of additional capacity already secured. - Ryan Duran(President, U.S. Digital & Mining)

How does the pipeline for new site acquisitions compare to existing site expansions? - Michael Donovan (H.C. Wainwright)

2025Q1: The company is currently focused on business in Oklahoma and is evaluating opportunities in other areas... - Bruce Rodgers(CEO)

Contradiction Point 5

Hash Rate Production Capacity

It pertains to the reported status of production capacity, which is fundamental to understanding the company's operational efficiency and growth potential.

Matthew Galinko (Maxim Group) - Matthew Galinko (Maxim Group)

2025Q4: The company is already maxed out on production from its two FogHashing immersion containers... - Ryan Duran(President, U.S. Digital & Mining)

Will optimizing production from immersion cooled units take time, or are you already at the desired efficiency level? - Michael Donovan (H.C. Wainwright)

2025Q1: The expansion is on schedule, with two 1-megawatt immersion mining containers ordered for a total of 2 megawatts of additional capacity, expected to be completed by the end of Q3 2025. - Bruce Rodgers(CEO) & Ryan Duran(President, U.S. Digital & Mining)