LM Funding updates its financial results, showing a strategic shift in cryptocurrency mining operations and significant Bitcoin holdings.
Quiver AI Summary
LM Funding America, Inc. (NASDAQ: LMFA) provided a business update and reported financial results for the three and nine months ended September 30, 2024. The company held 142.3 Bitcoin valued at approximately $12.4 million and revealed improvements in digital mining cost of revenues. CEO Bruce Rodgers highlighted a strategic shift towards vertical integration, aiming to lower operating costs through sourcing low-cost power and relocating mining operations. Despite generating around $1.1 million in revenue from 18.5 Bitcoins mined during Q3 2024, total revenue decreased due to the impacts of the April Bitcoin halving event, resulting in a net loss of $4.8 million for the quarter. CFO Richard Russell expressed optimism for the future due to rising Bitcoin prices, and the company will host a conference call to discuss results and strategies further.
Potential Positives
- LM Funding America holds 142.3 Bitcoin, valued at approximately $12.4 million, reflecting the company's investment in the rising value of Bitcoin.
- The vertical integration strategy has led to substantial improvements in digital mining cost efficiencies, indicating a proactive approach to managing operational expenses.
- The appointment of Ryan Duran as president of the US Digital Mining and Hosting Co LLC positions the company to enhance its operational efficiency and strategic direction in the cryptocurrency mining industry.
- Despite a net loss, the company closed the quarter with approximately $14.9 million in cash and Bitcoin, suggesting solid liquidity and financial health for future operations.
Potential Negatives
- Net loss for the third quarter was $4.8 million, which is nearly the same as the $4.7 million loss in the comparable quarter of 2023, indicating stagnation in financial performance.
- Significant revenue decrease from $3.3 million in Q3 2023 to $1.1 million in Q3 2024, attributed partly to the effects of the April Bitcoin halving event.
- Net loss attributable to shareholders increased to approximately $6.4 million compared to a $4.4 million loss in the prior year, reflecting worsening financial conditions.
FAQ
```htmlWhat financial results did LM Funding report for Q3 2024?
LM Funding reported total revenue of approximately $1.3 million and a net loss of $4.8 million for Q3 2024.
How many Bitcoins does LM Funding hold as of September 30, 2024?
LM Funding held 142.3 Bitcoins valued at approximately $12.4 million based on a Bitcoin price of $87,000.
What is LM Funding's vertical integration strategy?
The vertical integration strategy focuses on acquiring lower-cost power sources and relocating miners to enhance operational efficiency and reduce costs.
Who has been appointed president of LM Funding's US Digital Mining division?
Ryan Duran has been named president of LM Funding’s US Digital Mining and Hosting Co LLC.
When is LM Funding's investor conference call scheduled?
The investor conference call is scheduled for November 13, 2024, at 11:00 A.M. Eastern Time.
```Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. See the full release here.
Other $LMFA Data
$LMFA Insider Trading Activity
$LMFA insiders have traded $LMFA stock on the open market 14 times in the past 6 months. Of those trades, 1 have been purchases and 13 have been sales.
Here’s a breakdown of recent trading of $LMFA stock by insiders over the last 6 months:
- RYAN H DURAN (Vice President of Operations) has traded it 13 times. They made 0 purchases and 13 sales, selling 6,500 shares.
- MARTIN A TRABER purchased 5,000 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$LMFA Hedge Fund Activity
We have seen 6 institutional investors add shares of $LMFA stock to their portfolio, and 3 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CITADEL ADVISORS LLC added 27,928 shares (+inf%) to their portfolio in Q2 2024
- VIRTU FINANCIAL LLC added 21,604 shares (+inf%) to their portfolio in Q2 2024
- UBS GROUP AG added 5,118 shares (+inf%) to their portfolio in Q2 2024
- GROUP ONE TRADING, L.P. removed 1,567 shares (-98.8%) from their portfolio in Q2 2024
- TOWER RESEARCH CAPITAL LLC (TRC) added 1,220 shares (+268.1%) to their portfolio in Q2 2024
- GEODE CAPITAL MANAGEMENT, LLC removed 1,009 shares (-2.3%) from their portfolio in Q3 2024
- BANK OF AMERICA CORP /DE/ added 18 shares (+inf%) to their portfolio in Q2 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
