LM Funding America, Inc. (LMFA) reported a decrease in total revenues for the fiscal year ended December 31, 2024, amounting to approximately $11.0 million, down from $13.0 million in the previous year. The decline was primarily driven by a significant drop in Bitcoin mining revenues, which fell to approximately $10.4 million from $12.3 million in 2023. This reduction in mining revenue was attributed to a halving event in April 2024, which cut the Bitcoin reward per block from 6.25 to 3.125, alongside the temporary offline status of around 4,000 mining machines during the transition to a new hosting site in Oklahoma.
Operating costs and expenses also decreased by approximately $5.6 million, or 24.3%, to about $17.5 million, primarily due to lower digital mining costs and a reduction in staff and professional fees. The digital mining cost of revenues represented 67% of mining revenues in 2024, a decrease from 77% in 2023, reflecting improved operational efficiencies as the company transitioned its mining operations. Despite these reductions, the company reported a net loss attributable to LMFA of approximately $7.3 million, compared to a net loss of $15.9 million in the prior year.
In terms of operational developments, LMFA's Bitcoin mining capacity increased, with the company owning approximately 5,840 mining machines as of December 31, 2024, and a total hashing capacity of 0.634 EH/s. The company also completed the acquisition of a 15 MW mining site in Oklahoma for approximately $7.3 million, which is expected to enhance its mining capabilities. Additionally, LMFA has engaged in various financing arrangements, including a $1.5 million secured loan and a $5.0 million senior secured term loan, to support its operations and growth initiatives.
Looking ahead, LMFA anticipates continued volatility in the Bitcoin market, which could impact its revenue and profitability. The company has indicated that it will need to raise additional capital to fund its operations and expansion plans, particularly in light of the competitive nature of the Bitcoin mining industry and the need for ongoing investment in mining equipment. The management remains focused on optimizing operational efficiencies and exploring strategic opportunities to enhance its market position in both the cryptocurrency mining and specialty finance sectors.
About LM FUNDING AMERICA, INC.
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