LM Funding's Bitcoin Holdings Surge to $15M Despite Mining Challenges

LM Funding America, Inc. Reports $15 Million Bitcoin Holdings

LM Funding America (NASDAQ: LMFA) has provided an update on its Bitcoin mining operations for December 2024. The company announced that it holds 150.2 BTC, valued at approximately $15.0 million, based on an estimated BTC price of $100,000 as of December 31, 2024.

Q4 2024 Gain Expectations

During the fourth quarter of 2024, LMFA anticipates recognizing a gain on fair value of mined Bitcoin of approximately $4.0 million. This is particularly significant given the context of a declining mining output.

Mining Operations Overview

In December, LMFA mined 7.0 Bitcoin, sold 4.0 Bitcoin, and purchased 5.0 Bitcoin. The company maintained 3,700 active miners and has 2,180 miners in storage, with a potential hash rate of 639 PH/s at the end of the month. This is a notable decrease compared to December 2023, when they mined 37.3 Bitcoin with 5,950 miners.

Strategic Shift in Operations

The operational metrics reveal a strategic shift from a mining-and-selling approach to a more conservative mine-and-hold strategy. This is exemplified by the reduced selling of mined Bitcoin, with only 4.0 BTC sold in December, down from 18.0 BTC in December 2023. This strategy positions LMFA favorably for potential future price increases in Bitcoin.

Market Valuation Insights

With a market cap of $10.7 million, LMFA's Bitcoin holdings surpass their market valuation by approximately 40%, indicating possible undervaluation. The company's strategic focus on asset retention and operational flexibility, combined with their stored mining equipment, provides potential for rapid scaling when market conditions improve.