LM Funding America Inc (LMFA) Quote

Since September:

BTC + 65%
LMFA -50%

Split adjusted, the offering in 2021 is down 97%

Investors from 2021 are down 97%

The 8 people running this company make nearly as much annually as the entire market value of the company itself.

Staff and payroll costs for 7-8 people for 9 months ending 9/30/24 was 3.7M

That's 41,111 - 58,700/month per employee.

That's roughly 5M a year for 7-8 employees operating a company with a market cap value of 7.5M. That doesn't include lofty bonuses paid in December.

If you average up and say they will mine 10 btc a month with the addition of the 15MW plant and enhanced software, at 90,000 a coin that's 10.8M/year.

Not including bonuses, payroll alone for 7-8 people is 5M a year. New top line revenue projections are 9M a year at current market prices. Payroll not including lofty bonuses is 46% of every dollar mined. Add in 1.6M through 9 months for "professional services" wages and 1099 costs, without adding a single dollar to professional fees for the last quarter, is 6.6M a year.

61.1% of projected TOP LINE revenue is for wages of 7-8 people and professional fees.

Last checked, and this could be wrong, but energy to mine a BTC was roughly 40,000 on a s19.

10 btc per month times 12 months is 120 btc. Times 40k energy costs = 4.8M

4.8M + 5M in wages + 1.6M in professional fees = 11.4M. Top line projections on the generous side 2025 are 10.8M.

Add in all other operating costs, another 7M in Depreciation expense on the miners, 2025 is looking like another massive loss for shareholders.

But the 7-8 people running it will still get their 5M a year.

This is why no one buys their stock. They are fleecing the company for every dollar internally with no indication of creating value or profits for shareholders both near and long term. With no plan or mention on how they would do it except more acquisitions. Which would require more capital. More dilution. More reverse splits, and more losses on top of the nearly 100M this group has burned through over the years to get to this point.

Not looking good. They are barely holding onto NasdaqCM requirements now as it is to stay listed as well while the stock sits at all time decade lows.

While the 8 employees living lavishly.

They keep reporting we have 15M in btc. But fail to mention 5M is collateral for debt and basically signed over all rights and "first in line" and to the assets to 1 private investor for the entire company if it fails.

Entire company is an insider job. Should not be public. Markets are just used to fleece the public.

Down 99.97% all time, and still listed.

Why sell 365 bitcoin miners for 79k when they are on the books for 1.3M?

In order to accommodate an expected incoming shipment of S21 mining machines in April 2024, management identified 365 mining machines at a Core hosting facility that would require relocation. As part of its impairment testing management considered the possible cashflows and probabilities associated with the relocation and continued use of 365 mining machines at a separate hosting facility location and the potential sale of such assets to a third-party. Based on the assessment performed, management concluded a sale was probable and an impairment of $1.2 million on the mining machines was recorded during the first quarter, which was calculated as the net carrying value of the 365 mining machines of $1.3 million less the expected sales price of $79 thousand. A loss was recorded on the Consolidated Statements of Operations as "Impairment loss on mining equipment" for the three and nine months ended September 30, 2024 of nil and $1.2 million, respectively.

On April 16, 2024, the 365 mining machines were sold to a third-party for $79 thousand. There was no additional loss recognized upon the asset sale

The Nasdaq Capital Market (Nasdaq-CM) is one of three listing tiers on the Nasdaq exchange, specifically for companies that need to raise capital.
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All the standards share some requirements such as one million publicly held shares, 300 shareholders, and three market makers (MMs). However, these also differ in important ways. The equity standard requires stockholders' equity of $5 million, where the other two require only $4 million, and it also requires an operating history of two years, while the other two do not require an operating history.

The market value of listed securities requires a market value of listed securities of $50 million and a market value of publicly held shares of $15 million. The net income standard is the only one requiring a net income, $750,000 in the latest fiscal year or in two of the last three years, but has the lowest requirement for market value of publicly held shares at $5 million.

Need another RS. Already

-99.93% all time. Time for a new ceo.

The cfo has stopped selling shares biweekly..

Funny Maxim is hosting LMFA in some type of investment opportunity tomorrow.

When in October 2021 they sold shares of lmfa for 4.75 a share. Split adjusted, less than 4 years later, those shares are now worth 30 cents.

The shares Maxim sold lost 94 cents on the dollar, down 94% during the biggest bull run for stocks in the history of mankind

In October 2021 BTC was 44k. If they took that 30M and invested it in BTC, they would of had 681 BTC and the value today would be 68.1M

Instead, they have 158 valued at 16M, mainly all collateral with debt, and a 9M enterprise market cap.

Ouch.

LMFA.............................https://stockcharts.com/h-sc/ui?s=LMFA&p=W&b=5&g=0&id=p86431144783

All i can see is a small farm in rural area

I posted the address of the new plant on the board. When u google it it's basically a mini power plant facility. With many lines moving through the property to power everything.


Not sure if there is a way to share Google earth bird view or street view of the facility. But it's big.

Alot going on at that property. This miner going big time in a hurry now.

Address of 15MW plant

18875 Highway 270 West, Calumet, OK 73014

You can see the structures, power lines, etc. Looks like a mini power plant complex.

The new site was purchased by:

US DIGITAL MINING AND HOSTING OKLAHOMA LLC

Not sure how much ownership LMFA has or what the structure is.

New all time low today? Wow.

At least lmfa executive pay is at all time highs.

January news expected:

1. December mining results
2. Confirmation the tenants occupying 5MW in the new 15MW plant have vacated (deadline is January 10th)
3. Energizing if an additional 2250 machines that have been in storage

February news expected:
1. January mining results
2. Q4 and YTD financial results
A) Includes a gain on 142 btc holdings
increasing value of $40-45,000 per coin,
roughly 6M USD in revenue
B) Plus 20 btc mined, 2.M USD
C) Roughly 8M in revenue for Q4 expected

Moving forward with current machines fully energized, expected roughly 40-50 BTC mined per quarter with reduced costs associated with mining.

"Operating" profitability will be reached in 2025.

Stock - 52W Low.

Executives pay doubled

Warrant holder tax harvesting...

Stock 52W low

Salaries/bonuses doubled.

Adding anything under $2.75! What a gift!

Name and Principal Position Year ($) ($) ($) ($) ($)(1) ($)
Bruce Rodgers
2023 $ 825,000 $ - $ 488,345 $ 356,503 $ 24,860 $ 1,694,708
Chairman, CEO and President
2022 $ 750,000 $ - $ - $ - $ 10,571 $ 760,571
Richard Russell
2023 $ 550,000 $ - $ 488,345 $ 356,503 $ 48,467 $ 1,443,315
Chief Financial Officer
2022 $ 500,000 $ - $ - $ - $ 32,559 $ 532,559
Ryan Duran 2023
$ 192,500 $ - $ 122,086 $ 89,126 $ 40,217 $ 443,929
Vice President of Operations
2022 $ 175,000 $ 75,000 $ - $ - $ 32,559 $ 282,559
(1) These amounts consist of health insurance premiums, dental & vision insurance premiums paid by the Company in excess of non-executive contribution and 401K Company match.

This stock is set up to make 1 person wealthy. The one that received 500k common, 1.7M warrants, and 3.4M warrants at $3

When the share structure was 2.2M to begin with.

Should just go private. If they invested the 35M in 2021 in btc it'd be worth over 150M.

Instead they have what they have and worth 90% less, 15.

Another weak management team with poor execution.

Dead money.

3.4M more. Ouch

5.1M in proceeds for 3.4M in shares.

Definately had bad timing and short changed themselves. Options were written when btc was 60 not 100.

That's why its not moving.

An investor got 3.4M share rights for 5.1M usd. What they plan to do with them will be up to them. I'm assuming Maxim will receive a set amount they want to sell or an amount of USD they want to recoup and potentially hold the rest as an investment.

Or sell them all and crash the share price. Divided out if they pay 5.1M to LMFA they own those 3.4M share rights at only about 1.495/share.

Could of done way better!

New shares structure roughly 6.8M shares.

Company has another 5.1M in cash. Plus the millions on the balance sheet, plus the 15M in bitcoin, the 15MW mining facility, and 6000 s19 and s21 miners.

When they are fully operational in January they should mine about 15 BTC a month. Or about 1.5M usd at current levels, 4.5M a quarter, 18M a year.

Mining costs are roughly half of the value. So 9M. Plus 5M in operations, salaries, etc.

2025 without any change in btc price should be about 4M before interest Depreciation and taxes etc.

About .80/share.

6.5m times 3 dollars a share = 19.5M market cap. Trading at 5x forward earnings (2025).

Dilution continues..

Its odd crypto all tripled and that's literally all this company does. Tech company's get rewarded for sourcing cheap energy, they have done that too with the new plant in Texas.

Re-evaluation is imminent. Will happen quickly when it does.

Management definately short changed themselves. Borrowed 5M and raised another 3 with common and warrant options at a depressed cheap price. Rigs are still offline with btc at 100k.

A capital raise like 2021 for nearly 40M should of been very simple. They need to focus on stock price and raising the market cap for access to capital vs sucking out all the cash to pay executives as #1 priority when a btc gets minted.

They are still operating like a small timer and that is why they get no respect from the market.

I suspect dilution until that 1.7M in warrants are converted and sold as common. Until that ends it will remain around $3 share. Exercise price is 2.98

New filing

Notice of effectiveness filed S-3 for LMFA

A "Notice of Effectiveness S-3" refers to a notification from the Securities and Exchange Commission (SEC) that a company's Form S-3 registration statement, used for shelf offerings of securities, has become effective, meaning the company is now permitted to sell the registered securities to the public whenever they choose within the shelf registration period; essentially, it signifies that the SEC has reviewed and approved the company's offering details and the securities can be sold immediately upon filing a prospectus supplement with specific offering terms.

After the shareholder meeting volume has been elevated. The last round of funding was 550k shares or so plus 1.7M in warrants that can be exercised at 2.98

Since 1.7M was more than 19.99% of shares outstanding it needed approval. It got approval at that meeting.

Liquidity is being added with these warrants converting into shares. If they exercise all of them outstanding shares will be about 5M.

That is why the Share price has not been heading higher.

Nice Bitcoin miner low floater when they feel like it passes $3.61 resistance goes to $5 next 

Loading heavy here :) gonna be a good start to 2025 with this one 💪

The registrant had 3,397,042 shares of Common Stock, par value $0.001 per share, outstanding as of November 13, 2024.

Times $2.65/share = $9,002,161 market cap.

I suspect it's now over 4M outstanding. This is based on the approval of the warrant exercising and the additional volume of trading last week.

If all warrants exercise, total shares outstanding will be just over 5M shares.

The stock is being shorted and shares will be covered with the exercised warrants. It's why shorted shares have exploded this week. The new 10% owner (6B hedge fund) and Maxim are probably the guilty parties.

The MM is making $ on the way down. When finished they will make it on the way up.

If all warrants are converted, outstanding shares will move from 2.7M to about 4.5M shares.

LMFA will have received another 6M in cash.

It is safe to say they will have about 24M in cash and BTC to start 2025. Less roughly 4M to pay off the 15MW plant. 20M

4.5M shares times 2.50 a share is 11.25M market cap right now. So it's not as low as some appear.

They have been diluting all week. But cap is still around 50% BTC + Cash based on new developments.

IMO they short changed themselves not anticipating this giant move in BTC so early. Regardless, they are set up very nicely for 2025.

BTCT probably has no cash, last report they had less than 1M in bitcoin, and no 15MW plant. Not to mention a shady Chinese company.

You can read online that to build 1MW from scratch and provide 300 miners for that MW to power and mine...it costs roughly 2.5M USD

Times 15. 100% owned and paid for.

The reason it's falling is because a warrant holder is executing at 2.98

They are raising more $. Should have another 5,000,000 soon. They had a shareholder meeting Friday and the execution of up to 1.7M warrants was approved.

Lmfa will head into the weekend another 5M cash on hand. A PR of the closing of warrants and cash raised will follow I presume.

Estimating they will have north of 20M cash and bitcoin on hand.

1 MW Container holds approximately 300 next generation BTC miners. A MW buildout can run 250,000-750,00 depending on equipment and contractors.

Equipped with approximately 300 S19 Pro miners – $2,850,000 - $3,250,000 (assuming $9500/miner, these prices change often)

Monthly managed OPEX cost – $34,560 (300 miners x .05 cents x 3.2kw x 24 hours x 30 days/month)

LMFA has the miners. Now has the 15MW operations (just have to swap out the current partners miners with their own once they vacate) it's safe to assume 3M times 15 = 45M facility which includes the miners.

I repeat.

$45,000,000

All miners paid in full. 15MW facility paid in full in January. The balance due is a fraction of cash and BTC on hand.

This is beyond dirt cheap.

500X the intrinsic value of BTCT. All smoke and mirrors over there. .0001/share inevitable with that one.

Thats exactly how I see it. Been loading and loading. Looks like go time is finally here!

LMFA Long and Strong!

LMFA...........................https://stockcharts.com/h-sc/ui?s=LMFA&p=W&b=5&g=0&id=p86431144783

Wow. 16M in cash and btc as of 9.30

Tack on another 25,000 to the price of btc is another 3.75M

Lmfa has 20M in cash and btc. 6000 miners. A 15MW joint venture. 2.7m share float. And a 9m market cap.

10-30x inevitable.

Anyone would be insane not to jump on this.

Q3 will be a loss:

1. Took miners offline and moved then to a new facility. So thousands were not running during the quarter and btc mined fell as a result

2. Built out the 15MW mining plant

3. Setting up a new facility.


Q4 revenue estimates should be 7-8M. 4-5M profit.

150 btc * 85000 = 13M holdings

6/30 btc was 62k, now 84k

150 * 22k = 3.3M revenue gain since 6/30.

Bitcoin mined since 6.30 (while moving machines into new 15MW plant) = about 40.

40 * 84000 = 3.3M estimated.

It's reasonable to say LMFA has revenue recognition of nearly 7M the last 4 months. While thousands of miners were being moved and set up in a new facility. BTC production should be doubled moving forward - without any additional miners.

BTC Miners after Depreciation captured - 21M as of 6.30.24

Revenue the last 4 months during transition: 7M
BTC holdings: 13M
Miners FMV as of 6.30: 21M

Miners + BTC holdings alone are worth 34M today

Estimated revenue in 2025 w/BTC going to 100k

150 BTC mined = 15M
Gain on BTC = 3-10M
2025 Revenue = 18-25M
Estimated 2025 BTC + Miners + Cash = 50M

Even at 20% profit margins at 18-25M is 3.6-5M.

PE 20 = market cap of 72-100M.
PE 40 = market cap 144 - 200M

9M today.

Potential 9-22x.

If btc price holds, gain on btc holdings + bitcoin mined could exceed 8M revenue in Q4.

Considering just operating costs (taking out plant infrastructure for example). Net profit could exceed 4-6M for the quarter. That is q4. Not q3 to be reported wens.

Market cap 8M.

New 15mw plant has capabilities of mining 150-200 btc a year at full capacity. Roughly 15M. Excluding potential revenue of the rise in value of btc holdings. Cost to mine a btc with s19s is roughly 45k.

Forward PE currently for the entire year with q1 gain q2 and q3 loss and q4 forecast - is 1x

Forward potential PE is even less.

Even a 15 PE would value this at $45 a share.

It's no wonder the execs hold options at $30/share.

Big pay day inevitable.

Lmfa held a shareholder meeting on Friday.

Expect a quarterly report and the results of the annual shareholder meeting next week.

Assume they have about 3-4M in cash (2.8M capital raise + 5M loan secured with bitcoin holdings less operating costs and 15MW plant buildout) and 12M in Bitcoin.

Price target is $10/share short term.

On August 16, 2024, LM Funding America, Inc. (the “Company”) and an institutional investor (the “Purchaser”) entered into a securities purchase agreement (the “Securities Purchase Agreement”), pursuant to which the Company agreed to issue to the Purchaser, (i) in a registered direct offering, 278,000 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (“Common Stock”), and pre-funded warrants to purchase 590,185 shares of Common Stock (the “Pre-Funded Warrants”) with an exercise price of $0.0001 per share, and (ii) in a concurrent private placement, Series A warrants to purchase 868,185 shares of Common Stock (the “Series A Common Warrants”) and Series B warrants to purchase 868,185 shares of Common Stock (the “Series B Common Warrants” and together with the Series A Common Warrants, the “Common Warrants”), each with an exercise price of $2.98. Such registered direct offering and concurrent private placement are referred to herein as the “Transactions.” The combined effective offering price for each Share (or pre-funded warrant in lieu thereof) and accompanying Series A Warrant and Series B Warrant in the Transaction was $2.98. The Transactions closed on August 19, 2024.

The Company received aggregate gross proceeds from the Transactions of approximately $2.6 million, before deducting fees to the Placement Agent (as defined below) and other estimated offering expenses payable by the Company. The Company currently plans to use the net proceeds from the Transactions for general corporate purposes, including working capital, development and/or acquisition of hosting sites, and funding the purchase of additional Bitcoin mining machines.

The Company filed a registration statement on Form S-3 (File No. 333-258326) with the Securities and Exchange Commission (the “Commission”) on July 30, 2021, which was deemed effective on August 16, 2021 (the “Registration Statement”). Pursuant to Rule 415(a)(5) under the Securities Act of 1933, as amended (the “Securities Act”), the Company intends to continue to offer and sell the unsold Securities under the Registration Statement until the earlier of (i) the date on which the registration statement filed with the Commission on August 13, 2024, is declared effective by the Commission, and (ii) February 12, 2025, which is 180 days after the third-year anniversary of the effective date of the Registration Statement. The Shares and Pre-Funded Warrants were offered by the Company pursuant to the Registration Statement and that certain prospectus supplement dated August 16, 2024, filed by the Company with the Commission under the Securities Act on August 19, 2024.

The Common Warrants and the shares of Common Stock issuable upon exercise of the Common Warrants (the “Common Warrant Shares”) were issued in a concurrent private placement and have not been registered under the Securities Act, and are instead being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act and/or Rule 506(b) promulgated thereunder. The Common Warrants will be exercisable commencing on the effective date of stockholder approval for the issuance of the shares of Common Stock issuable upon exercise of the Common Warrants (the “Stockholder Approval Date”). The Series A Common Warrants will expire on the fifth anniversary of the Stockholder Approval Date and the Series B Common Warrants will expire on the second anniversary of the Stockholder Approval Date. The Pre-Funded Warrants will not expire and will be exercisable commencing on the date of issuance and at any time until all of the Pre-Funded Warrants are exercised in full. If, at the time of exercise a registration statement registering the issuance of the shares of Common Stock underlying the Common Warrants under the Securities Act is not effective or available, the holder may, in its sole discretion, elect to exercise the Common Warrants through a cashless exercise, in which the holder would receive upon such exercise the net number of shares of Common Stock determined according to the formula set forth in the Common Warrants. Further, if the Company sells, enters into an agreement to sell, or grants any option to purchase, or sells or grants any right to reprice, or otherwise disposes of any shares of Common Stock or Common Stock equivalents, at an effective price per share less than the exercise price then in effect, then the exercise price of the Common Warrants will be reduced to such price.

Estimating 150 BTC. At 74k. Over 11M in treasury.

Market cap 8m.

Price per share = to bitcoin treasury is $5 a share.

They have also been depreciating 6000 btc miners that were purchased for nearly 30M. Mainly S19s but added 300 21s recently. Only thing holding this back is the 4-5M a year they pay out in payroll each year. Market cap is penalized because of that, which reduces their ability to raise substantial capital for expansion. A new president of mining was announced late October. 15MW plant should be operating at less than capacity running thousands of their miners at this point. Sub mersion mining should be functional and reducing utility costs. Received 5M in loans. Additional capital from stock issuance and warrants. Warrrant execution will provide additional capital for expansion. They have voting matters at an annual meeting. It either just occurred or occuring this week. BTC touched all time high this morning. Looking good here. Hope you added around $2. Going to 5 then 10.

The 10x sound Grand to Me, likey the SS
Wont take much to Lift pps , to bad i got caught in rs.

1 MW Container holds approximately 300 next generation BTC miners – $150,000 usd. Equipped with approximately 300 S19 Pro miners – $2,850,000 (assuming $9500/miner, these prices change often) Monthly managed OPEX cost – $34,560 per MW container.

15 MW plant with 4500 miners start up cost is $42.5M. Plus 8.5M in BTC on hand.

Functional 15 MW plant operating 4500 S19 miners plus bitcoin on hand, fair value about $50M.

Market cap $7M

10X inevitable.

One thing is certain...

Wallstreet gives 0 respect/credit to the management here!

New stats

2.6M raise
5M loan
2M in btc sales

Approximately 10M cash raised last couple of weeks. 130 btc worth 8M. Nearly 6000 miners (s19s)

Recent build outs of plants is 275-300k usd a Megawatt. Last btc miner purchase of s21s was 300 north of 1M usd.

Even with 10M liquid and 8M bitcoin, with the losses just from operations and paying executives/staff...this only buys time.

Need 10s of millions minimum to even make a dent in the space. If not 100s of millions.

I do expect a jump in the stock. Lots of new warrants now at 2.93 a share. The company will want/need the cash and the investor will want to cash some out.

Wouldn't be surprised to see double digits by year end.

Revenue estimate: 24 btc mined at 65k average - 1.56M. Avg btc was 53k first quarter and 65k second quarter. Between 130 (end of July) - 160 most of the quarter btc holdings. Not sure how that is calculated. Say 150 btc times 12k gain. 1.8M gain to offset operating costs

1.8M gain + 1.56M mined + Misc interest income on loans. Roughly 3.5M to offset expenses.

Payroll last period 1.2M
Depreciation 2.4M
Mining costs (was half of revenue) so 800k this period
Operating costs, sales, misc another 1.5M
Impairment charge 1M

Totals costs est 7M
Revenue and offset gain: 3.5M
Loss for quarter: 3.5M

Got a loan for 5M
Sold 35 btc for 60K to raise 2.3M
130 btc Holdings remaining 7.8M

Need major capital raise for operations and expansion. Btc mining got expensive in a hurry with the halving dropping rewards. Company was forced to sell nearly 25% of all holdings in a single quarter to maintain operations.

Building a 75mw plant is roughly 300k a MW

Build out will be 22M to maximize the capacity, without miners to occupy it.

May look rich in equity on the balance sheet and btc holdings, but this company needs cash in a hurry. Days are numbered..