Mined 86.4 Bitcoins in Q1 2024 Valued at Approximately
Held 163.4 Bitcoin at
Conference Call to Be Held Today at
Operational Highlights
- Approximately 5,900 Bitcoin mining machines are in operation at hosting sites as of
March 31, 2024 - Mined 86.4 Bitcoin in Q1 2024, which generated approximately
$4.6 million in revenue based on the approximate$53,000 average price of Bitcoin in Q1 2024 - As of
March 31, 2024 , held 163.4 Bitcoin valued at approximately$11.7 million - As of
April 30, 2024 , held 155.1 Bitcoin valued at approximately$9.7 million based on a recent Bitcoin price of approximately$62,500 - Revenue for the three months ended
March 31, 2024 , increased approximately 105% over the same period last year - Net income for the three months ended
March 31, 2024 , was$1.9 million as compared to a net loss of$7.2 million for the 2023 comparable quarter - Achieved positive Core positive EBITDA (defined below) of
$4.4 million for the three months endedMarch 31, 2024 , compared to a Core EBITDA loss of$307 thousand for the same period last year (Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net loss can be found below)
“The Company was well-positioned for the Bitcoin halving event in mid-April, and as we move forward, we expect to enter into new hosting agreements reflecting the 2024 post-halving economic realities. To that end, we purchased 300 Bitmain S21 Antminer high-efficiency, high hash rate machines, mining the SHA-256 algorithm, which increased the Company’s mining capacity to 673 PH. These S21s are anticipated to boost long-term revenue in the lead-up to and following the next halving event, which is projected to occur in 2028. Moving forward, we anticipate entering into new hosting agreements that reflect the economic conditions post-2024 halving and will continue to assess further investments in Antminer equipment to fuel our growth. Considering current market conditions and the future outlook for Bitcoin, which reached a new all-time high of approximately
Financial Highlights
- Total revenue for the quarter ended
March 31, 2024 , was approximately$4.7 million , an increase of$2.4 million , or approximately 105%, compared to$2.3 million for the 2023 comparable quarter. This increase was primarily due to digital mining revenue of$4.6 million for the quarter, compared to$2.1 million for the same quarter in 2023. The average Bitcoin price for the three months endedMarch 31, 2024 , and 2023, recognized as revenue was approximately$53,200 and$22,800 , respectively. - Operating expenses totaled
$4.2 million for the three months endedMarch 31, 2024 , compared to$4.3 million for the comparable 2023 period. The change is primarily attributable to the$4.3 million gain on the fair value of Bitcoin which was not present during 2023 as we adopted the new Accounting Standards Update (“ASU”) 2023-08 for Bitcoin effectiveJanuary 1, 2024 . This gain was partially offset by a$1.0 million increase in digital mining costs, a$1.6 million increase in depreciation expense, a$1.2 million impairment loss on mining equipment and a$0.3 million increase in staff costs and payroll compared to the same quarter in 2023. Due to the discrepancy caused by the new ASU adoption in 2024, the comparable 2023 period reflects a$0.2 million impairment loss on mined digital assets and a$0.4 million realized gain on the sale of mined digital assets, which are not reflected in first quarter 2024 results. - Net income attributable to LM Funding shareholders for the three months ended
March 31, 2024 , was approximately$1.5 million , which included a$1.4 million non-cash, unrealized gain on investment and equity securities, and a$1.2 million non-cash, unrealized loss on the impairment of assets that were sold inApril 2024 as part of an asset switch over. This compares to a net loss of approximately$5.4 million for the 2023 comparable quarter, which included a$5.8 million non-cash, unrealized loss on investment and equity securities and$0.6 million of income from the sale of coupons. - Core positive EBITDA for the three months ended
March 31, 2024 , totaled approximately$4.4 million compared to a Core EBITDA loss of$0.3 million in the prior year's comparable quarter. The improvement in Core EBITDA for the three months endedMarch 31, 2024 , was primarily due to the full implementation of increased Bitcoin mining operations in the current year that did not exist in the prior year and higher Bitcoin prices. - Cash was approximately
$0.8 million , with digital assets of$11.7 million , and working capital of$12.7 million as ofMarch 31, 2024 , based on 163.4 BTC at a price of approximately$71,300 as ofMarch 31, 2024 . In the first quarter of 2024, the Company received approximately$1.4 million fromSeaStar Medical Holdings as a final repayment of their outstanding note receivable. - Total LM Funding stockholders’ equity was approximately
$38.5 million , or$15.43 per share, as ofMarch 31, 2024 . (with the per-share amount calculated as LMFA stockholders’ equity divided by approximately 2,492,964 shares outstanding as ofMarch 31 , 2024).
Investor Conference Call
LM Funding will host a conference call today,
The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for
A webcast replay will be available on the investor relations section of the Company’s website at https://www.lmfunding.com/investors/news-events/ir-calendar through
About
Forward-Looking Statements
This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company's most recent Annual Report on Form 10-K and its other filings with the
Contact:
Tel: (212) 671-1020
Email: LMFA@crescendo-ir.com
(tables follow)
2024 (Unaudited) | 2023 | |||||||
Assets | ||||||||
Cash | $ | 827,366 | $ | 2,401,831 | ||||
Digital Assets | 11,651,969 | 3,416,256 | ||||||
Finance receivables | 27,459 | 19,221 | ||||||
Marketable securities | 15,700 | 17,860 | ||||||
Receivable from sale of Symbiont assets | 200,000 | 200,000 | ||||||
Prepaid expenses and other assets | 2,483,368 | 4,067,212 | ||||||
Income tax receivable | 31,187 | 31,187 | ||||||
Current assets | 15,237,049 | 10,153,567 | ||||||
Fixed assets, net | 20,897,314 | 24,519,610 | ||||||
Deposits on mining equipment | 1,117,798 | 20,837 | ||||||
Notes receivable from Seastar Medical Holding Corporation | - | 1,440,498 | ||||||
Long-term investments - equity securities | 753,973 | 156,992 | ||||||
Investment in Seastar Medical Holding Corporation | 1,899,484 | 1,145,486 | ||||||
Operating lease - right of use assets | 162,966 | 189,009 | ||||||
Other assets | 86,798 | 86,798 | ||||||
Long-term assets | 24,918,333 | 27,559,230 | ||||||
Total assets | $ | 40,155,382 | $ | 37,712,797 | ||||
Liabilities and stockholders' equity | ||||||||
Accounts payable and accrued expenses | 2,042,906 | 2,064,909 | ||||||
Note payable - short-term | 325,669 | 567,586 | ||||||
Due to related parties | 55,290 | 22,845 | ||||||
Current portion of lease liability | 114,148 | 110,384 | ||||||
Total current liabilities | 2,538,013 | 2,765,724 | ||||||
Lease liability - net of current portion | 56,148 | 85,775 | ||||||
Long-term liabilities | 56,148 | 85,775 | ||||||
Total liabilities | 2,594,161 | 2,851,499 | ||||||
Stockholders' equity | ||||||||
Preferred stock, par value | - | - | ||||||
Common stock, par value | 2,493 | 2,493 | ||||||
Additional paid-in capital | 95,327,227 | 95,145,376 | ||||||
Accumulated deficit | (56,857,610 | ) | (58,961,461 | ) | ||||
Total | 38,472,110 | 36,186,408 | ||||||
Non-controlling interest | (910,889 | ) | (1,325,110 | ) | ||||
Total stockholders' equity | 37,561,221 | 34,861,298 | ||||||
Total liabilities and stockholders’ equity | $ | 40,155,382 | $ | 37,712,797 | ||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues: | ||||||||
Digital mining revenues | $ | 4,597,908 | $ | 2,090,851 | ||||
Specialty finance revenue | 116,628 | 182,836 | ||||||
Rental revenue | 33,068 | 39,831 | ||||||
Total revenues | 4,747,604 | 2,313,518 | ||||||
Operating costs and expenses: | ||||||||
Digital mining cost of revenues (exclusive of depreciation and amortization shown below) | 2,654,946 | 1,667,673 | ||||||
Staff costs and payroll | 1,243,026 | 932,835 | ||||||
Depreciation and amortization | 2,426,068 | 801,873 | ||||||
Gain on fair value of Bitcoin, net | (4,257,515 | ) | - | |||||
Impairment loss on mining equipment | 1,188,058 | - | ||||||
Impairment loss on mined digital assets | - | 199,554 | ||||||
Realized gain on sale of mined digital assets | - | (424,333 | ) | |||||
Professional fees | 509,893 | 572,356 | ||||||
Selling, general and administrative | 177,906 | 239,464 | ||||||
Real estate management and disposal | 27,189 | 31,803 | ||||||
Collection costs | 926 | 9,808 | ||||||
Other operating costs | 214,505 | 251,911 | ||||||
Total operating costs and expenses | 4,185,002 | 4,282,944 | ||||||
Operating income (loss) | 562,602 | (1,969,426 | ) | |||||
Unrealized gain (loss) on marketable securities | (2,160 | ) | 5,790 | |||||
Impairment loss on prepaid machine deposits | - | (36,691 | ) | |||||
Unrealized gain (loss) on investment and equity securities | 1,350,979 | (5,822,854 | ) | |||||
Gain on fair value of purchased Bitcoin, net | 57,926 | - | ||||||
Realized gain on sale of purchased digital assets | - | 1,917 | ||||||
Loss on disposal of assets | (8,170 | ) | - | |||||
Other income - coupon sales | 4,490 | 603,591 | ||||||
Interest expense | (70,826 | ) | - | |||||
Interest income | 9,125 | 55,077 | ||||||
Income (loss) before income taxes | 1,903,966 | (7,162,596 | ) | |||||
Income tax expense | - | - | ||||||
Net income (loss) | $ | 1,903,966 | $ | (7,162,596 | ) | |||
Less: loss (income) attributable to non-controlling interest | (414,221 | ) | 1,776,264 | |||||
Net income (loss) attributable to | $ | 1,489,745 | $ | (5,386,332 | ) | |||
Basic income (loss) per common share | $ | 0.61 | $ | (2.41 | ) | |||
Diluted income (loss) per common share | $ | 0.61 | $ | (2.41 | ) | |||
Weighted average number of common shares outstanding | ||||||||
Basic | 2,428,203 | 2,232,964 | ||||||
Diluted | 2,428,203 | 2,232,964 | ||||||
Three Months ended | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | 1,903,966 | $ | (7,162,596 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||||||||
Depreciation and amortization | 2,426,068 | 801,873 | ||||||
Noncash lease expense | 26,043 | 23,224 | ||||||
Stock compensation | 71,047 | - | ||||||
Stock option expense | 110,804 | 194,356 | ||||||
Accrued investment income | (8,568 | ) | (53,734 | ) | ||||
Digital assets other income | (4,490 | ) | - | |||||
Gain on fair value of Bitcoin, net | (4,315,441 | ) | - | |||||
Impairment loss on mining machines | 1,188,058 | - | ||||||
Impairment loss on digital assets | - | 199,554 | ||||||
Impairment loss on hosting deposits | - | 36,691 | ||||||
Unrealized loss (gain) on marketable securities | 2,160 | (5,790 | ) | |||||
Unrealized loss (gain) on investment and equity securities | (1,350,979 | ) | 5,822,854 | |||||
Loss on disposal of fixed assets | 8,170 | - | ||||||
Realized gain on sale of digital assets | - | (426,250 | ) | |||||
Change in operating assets and liabilities: | ||||||||
Prepaid expenses and other assets | 1,583,843 | 36,473 | ||||||
Advances (repayments) to related party | 32,445 | (12,659 | ) | |||||
Accounts payable and accrued expenses | (22,003 | ) | 111,486 | |||||
Mining of digital assets | (4,597,908 | ) | (2,090,851 | ) | ||||
Proceeds from sale of digital assets | - | 1,455,141 | ||||||
Lease liability payments | (25,863 | ) | (22,243 | ) | ||||
Net cash used in operating activities | (2,972,648 | ) | (1,092,471 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Net collections of finance receivables - original product | (8,238 | ) | - | |||||
Net collections of finance receivables - special product | - | 4,695 | ||||||
Capital expenditures | - | (263,596 | ) | |||||
Collection of notes receivable | 1,449,066 | 1,644,834 | ||||||
Investment in digital assets | - | (35,157 | ) | |||||
Proceeds from sale of digital assets | 1,296,233 | 33,675 | ||||||
Deposits for mining equipment | (1,096,961 | ) | (923,687 | ) | ||||
Net cash from investing activities | 1,640,100 | 460,764 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Insurance financing repayments | (241,917 | ) | (177,393 | ) | ||||
Net cash used in financing activities | (241,917 | ) | (177,393 | ) | ||||
(1,574,465 | ) | (809,100 | ) | |||||
CASH - BEGINNING OF PERIOD | 2,401,831 | 4,238,006 | ||||||
CASH - END OF PERIOD | $ | 827,366 | $ | 3,428,906 | ||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | ||||||||
ROU assets and operating lease obligation recognized | $ | - | $ | 21,887 | ||||
Reclassification of mining equipment deposit to fixed assets, net | $ | - | $ | 54,876 | ||||
Change in accounting principle | $ | 614,106 | $ | - | ||||
SUPPLEMENTAL DISCLOSURES OF CASHFLOW INFORMATION | ||||||||
Cash paid for taxes | $ | - | $ | - | ||||
Cash paid for interest | $ | - | $ | - | ||||
NON-GAAP FINANCIAL INFORMATION (unaudited)
Our reported results are presented in accordance with
The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net income (loss) | $ | 1,903,966 | $ | (7,162,596 | ) | |||
Income tax expense | - | - | ||||||
Interest expense | 70,826 | - | ||||||
Depreciation and amortization | 2,426,068 | 801,873 | ||||||
Income (loss) before interest, taxes & depreciation | $ | 4,400,860 | $ | (6,360,723 | ) | |||
Unrealized loss (gain) on investment and equity securities | (1,350,979 | ) | 5,822,854 | |||||
Impairment loss on prepaid hosting deposits | - | 36,691 | ||||||
Impairment loss on mining equipment | 1,188,058 | - | ||||||
Stock compensation and option expense | 181,851 | 194,356 | ||||||
Core income (loss) before interest, taxes & depreciation | $ | 4,419,790 | $ | (306,822 | ) |
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