Executive Summary

Q4 2024 revenue was $2.00M, down 50.1% year over year due to the April 2024 Bitcoin halving and miner transitions, while net income attributable to LM Funding was $2.0M versus a $(1.6)M loss in Q4 2023, driven by a $4.3M fair value gain on Bitcoin .
EPS beat consensus: Primary EPS actual was $(0.733)* vs $(1.67)* estimate; revenue $1.77M* vs $1.50M* estimate, aided by fair value gains and lower mining costs; note company-reported diluted EPS was $(0.86) due to deemed dividends of $5.09M .
Core EBITDA surged to $3.3M vs $0.3M in Q4 2023 on fair value gains, lower digital mining costs, and reduced compensation .
Strategic pivot to vertical integration with a 15 MW Oklahoma site at ~$0.04/kWh and Luxor’s LuxOS firmware expected to lift efficiency by 10–15% positions margins and uptime to improve in 2025; energized hash rate reached 560 PH/s by end-February .

Note: We searched for an 8-K Item 2.02 earnings release; none was filed around the Q4 2024 date window. This recap uses the full Q4 2024 press release and call transcript .

What Went Well and What Went Wrong

What Went Well

Vertical integration: “We transitioned from an infrastructure-light hosted mining strategy to a vertically integrated model… secured low-cost power… own and totally control our mining infrastructure and costs,” said the CEO .
Profitability on Core EBITDA: Core EBITDA was $3.3M in Q4 and $3.9M for FY 2024, versus losses in 2023, reflecting fair value gains, lower mining costs, and reduced compensation .
Balance sheet: Cash rose to $3.4M, Bitcoin holdings valued at $14.0M at year-end (150.2 BTC), expanding to 165.8 BTC by Feb 28; management highlighted market cap (<$8M) vs BTC holdings (~$14.4M) as a value disconnect .

What Went Wrong

Revenue contraction: Q4 revenue of $2.00M vs $4.06M in Q4 2023 due to the April halving and moving miners into storage pending Oklahoma activation .
GAAP EPS burden: Despite positive net income attributable to LM Funding, deemed dividends of $5.09M led to diluted EPS of $(0.86), creating an optics headwind .
Execution lag on expansion: Texas LOIs fell away and Oklahoma’s additional 2 MW requires groundwork and infrastructure, with ~90-day timeline and broader site expansions taking longer .

Financial Results

Summary (Quarterly progression and YoY reference)

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenue ($USD)	$3,011,347	$1,255,473	$1,985,224
Net Income attributable to LM Funding ($USD)	$(6,072,855)	$(6,402,379)	$1,965,808
Core EBITDA ($USD)	$(2,178,867)	$(1,621,775)	$3,321,623
Diluted EPS ($)	$(2.44)	$(2.41)	$(0.86)

Metric	Q4 2023	Q4 2024
Total Revenue ($USD)	$4,055,414	$1,985,224
Diluted EPS ($)	$(0.67)	$(0.86)

Segment Revenue Breakdown

Segment	Q2 2024	Q3 2024	Q4 2024
Digital Mining Revenue ($USD)	$2,893,073	$1,127,455	$1,814,169
Specialty Finance Revenue ($USD)	$89,036	$97,558	$140,377
Rental Revenue ($USD)	$29,238	$30,460	$30,678

KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Bitcoin Mined (BTC)	44.1	18.5	21.7
Avg BTC Price ($USD)	~$65,600	~$60,870	~$83,000
BTC Holdings at Period End (BTC)	160.4	142.3	150.2
Energized Hash Rate (PH/s)	N/A	N/A	560 (end-Feb 2025; post-quarter ops context)

Results vs S&P Global Consensus (Q4 2024)

Metric	Consensus	Actual	Surprise
Revenue ($USD)	$1,500,000*	$1,773,278*	+$273,278 (beat)*
Primary EPS ($)	$(1.67)*	$(0.733)*	+$0.94 (beat)*

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Efficiency upgrade (LuxOS firmware)	Q1–Q2 2025	Not guided	+10–15% mining efficiency potential	Raised (qualitative)
Fleet expansion (Bitmain S21/S21+)	March 2025 delivery	Not guided	~270–256 units; +~58 PH capacity planned	Raised (capacity)
Oklahoma site incremental capacity	~90 days	Not guided	+2 MW add with groundwork and infra; sockets currently full	Raised (capacity)
Strategic focus (AI/HPC)	2025	N/A	Focus exclusively on Bitcoin; AI facility off the table	Maintained (focus)
Debt financing (BTC-backed)	2024–2026	N/A	$5M secured loan at ~12% for 2 years; BTC collateral ~$5M	New (financing)

LM Funding did not issue formal numerical guidance for revenue, margins, OpEx, OI&E, or tax rates in Q4 2024; guidance was operational/strategic in nature .

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Vertical integration & low-cost power	LOI for TX (12 MW, +60 MW potential); Arthur 15 MW hosting at cost	~$0.04/kWh in OK; expansion options discussed	Own 15 MW OK site; firm ~$0.04 power; greater uptime and margin control	Strengthening
Efficiency/firmware	Focus on integrating advanced software	N/A	LuxOS firmware deployment; +10–15% efficiency expected	Improving
Capacity/Hash rate	639 PH potential across fleets	639 PH cited; transitions ongoing	560 PH energized by end-Feb; +2 MW near term; S21+ arriving Mar	Building
Bitcoin treasury strategy	Hold a portion of mined BTC	BTC holdings 142.3; optimistic outlook	150.2 BTC at YE; 165.8 by Feb; highlight valuation gap	Accumulating
Specialty finance (condo reserves)	Stable; potential growth from FL legislation	Monitoring legislative timing; opportunities expected	No material change; still opportunistic	Stable
AI/Data center diversification	Considered; not core	N/A	Explicitly off the table; focus on Bitcoin and power curtailment economics	Deprioritized
M&A/Pipeline	TX LOI; OK growth with Arthur	Evaluating M&A targets	Evaluating 2–15 MW assets; Texas LOIs no longer outstanding	Mixed/Opportunistic

Management Commentary

CEO: “We transitioned… to a vertically integrated model… secured low-cost power… own and totally control our mining infrastructure and costs,” reflecting margin/uptime focus and future site acquisitions .
CFO: “Disciplined in our spending… enabled us to achieve profitability in 2024 on a Core EBITDA basis, as well as grow our Bitcoin treasury,” connecting cost control and treasury strategy .
Strategy: Target 5–20 MW acquisitions below larger operators’ thresholds; leverage BTC-backed debt and potential M&A .
Financing: $5M secured loan at ~12% over two years, collateralized by ~$5M BTC, preserves BTC upside vs selling holdings .

Q&A Highlights

Oklahoma capacity and timing: +2 MW “fairly quickly,” groundwork ~3 weeks; “should be within 90 days,” and sockets currently full .
LuxOS deployment: Deployed across Calumet site; applicable to newer machines; expected margin uplift .
BTC-backed loan rationale: Financing long-term assets while retaining BTC; 12% for two years, collateralized by ~$5M BTC .
Pipeline for assets: Evaluating 2–15 MW sites; focus on electricity price and contract terms; favorable curtailment economics in OK .
AI stance: Not pursuing AI/HPC; capital and customer requirements outside core competency; focus on Bitcoin mining and power market positioning .

Estimates Context

LMFA beat consensus on both revenue and EPS for Q4 2024: Revenue $1.77M* vs $1.50M* estimate; Primary EPS $(0.733)* vs $(1.67)* estimate [GetEstimates]. Values retrieved from S&P Global.*
Company-reported diluted EPS was $(0.86) due to $5.09M deemed dividends; this can create differences vs S&P’s Primary EPS actual series; expect analysts to adjust models for fair value gains and dividend impacts as they assess earnings quality .
Estimate revisions may reflect: improved efficiency (LuxOS), vertical integration lowering power costs (~$0.04/kWh), near-term +2 MW capacity, and additional S21/S21+ miners arriving in March .

Key Takeaways for Investors

The quarter’s upside vs consensus was primarily driven by fair value gains on BTC and improved cost structure; core operations benefited from vertical integration and low-cost power .
Watch near-term catalysts: +2 MW at OK within ~90 days, LuxOS efficiency lift, and ~270 S21/S21+ deliveries in March; these should support higher hash rate and margins into 2025 .
Valuation gap: Management highlighted BTC holdings (~~$14.4M) exceeding market cap (~~$7.6M) at the time; stock may react to evidence of sustained hash rate growth and margin capture .
Risk factors: Revenue sensitivity to halving and network difficulty; GAAP optics from deemed dividends and fair value accounting; execution risk on site build-outs and asset acquisitions .
Strategic focus remains on Bitcoin mining and power market optionality (including curtailment revenue), not AI/HPC; expect capital allocation toward miners and power assets .
Specialty finance remains a stable optionality tied to Florida reserve funding rules, but near-term drivers are predominantly mining-related .
Financing toolkit includes BTC-backed loans to avoid liquidating BTC; monitor debt costs vs BTC price to assess arbitrage and balance sheet flexibility .

Appendix: Additional Q4 2024 Disclosures

Q4 revenue: $2.00M; digital mining $1.81M; specialty finance $0.14M; rental $0.03M .
Net income attributable to LM Funding: $1.97M; deemed dividends $5.09M; diluted EPS $(0.86) .
Year-end cash $3.4M; digital assets $14.0M (150.2 BTC at ~$93k) .
Balance sheet equity: Net book value ~$35.3M, or $7.21/share (5,133,412 shares out) .
Operational: 15 MW OK site acquisition; plan to add 2 MW; LuxOS firmware expected +10–15% efficiency .

S&P Global estimates used where noted.*

LM FUNDING AMERICA, INC. (LMFA)·Q4 2024 Earnings Summary