LM Funding Americas shared a detailed Q1 2025 earnings call transcript that walks through mining results, operational shifts into immersion cooling, power sales back to the grid, cost cuts, and balance sheet positioning tied to Bitcoin holdings. Executives highlighted production progress, margin gains from upgrades, a move to vertically integrated operations, and plans to expand Oklahoma capacity while selling curtailed power as a partial hedge. The call also covered recent machine sales, cash and Bitcoin balances, and guidance around site build-outs and treasury strategy.
Bruce Rodgers: Thanks, Cody. Good morning and thank you for joining us today. The first quarter of 2025 marked another period of strong execution and strategic progress for LM Funding. Since entering the Bitcoin mining business in 2021, we have transitioned from an asset-like model to a vertically integrated operator, gaining full control of our fleet, improving margins, and reducing operational risks.
Executives reported that the company mined 24.3 Bitcoin for the quarter while improving operational efficiency and monetizing curtailment energy by selling power back to the grid during peak demand. Management emphasized disciplined cost management and leaner operations, pointing to lower operating expenses and margin improvements. They also highlighted a discrepancy between Bitcoin holdings and market capitalization, noting Bitcoin holdings worth more than the company’s current stock valuation on a per-share basis.
Ryan Duran: Thank you, Bruce. In the first quarter, we focused on maximizing the operational efficiency of our existing infrastructure while targeting strategic growth opportunities. We achieved 560 petahash at the end of March, deployed LuxOS upgrades across our Oklahoma fleet, and executed our first power sales back to the grid.
Ryan discussed ordering two 1 megawatt immersion mining containers for a planned 2 megawatt expansion at the Oklahoma site and expects construction and energization by the end of Q3, pending shipping. He described immersion cooling as a major operational advancement that enables operation in crowded or harsh environments with lower-cost power. The shift to immersion also drove the decision to sell 256 Bitmain S21+ machines and to relocate 800 machines from a hosting partner to the company’s Oklahoma facility.
Richard Russell: Thank you, Ryan. In the first quarter of 2025, we mined 24.3 Bitcoins at an average price of $93,500, which was 12% more Bitcoins mined sequentially. Bitcoin mining revenue for the quarter was approximately $2.3 million, up 25% sequentially, reflecting the success of our infrastructure investments and improved machine efficiency from the LuxOS upgrades.
Rick added that power sales generated about $150,000 in Q1 and around $120,000 in April, helping offset mining costs and improving mining margins from 31.2% in Q4 2024 to 38.5% in Q1 2025. The company reported a net loss of $5.4 million and a core EBITDA loss of $2.8 million, driven in part by a $1.8 million non-cash write-down on Bitcoin holdings as of March 31. As Bitcoin recovered in price, much of that write-down had reversed by the date of the call.
Financials showed $1 million in cash at quarter-end and a Bitcoin balance that rose to 160.2 BTC valued at $13.2 million as of March 31, 2025. Management reiterated a long-term accumulation strategy for Bitcoin that began in 2021, and noted prior borrowing secured by Bitcoin as part of treasury management flexibility. They suggested adding Bitcoin to the balance sheet via debt or equity could be part of future funding options.
On the operational front, the leadership team signaled a focus on building out medium-sized Greenfield and Brownfield sites in the 5 to 20 megawatt range that often fly under the radar of larger miners. Treating mining sites as power producers, the company plans to use curtailment agreements to sell excess energy and smooth operating costs. Executives believe this model can produce flexible, lower-cost mining operations that perform across different market conditions.
Operator: Thank you, Bruce. [Operator Instructions] Our first question coming from the line of Michael Donovan with H.C. Wainwright. Your line is open.
Michael Donovan: Hi, Bruce, Rick, Ryan. Thank you for taking my question. This is Michael Donovan calling in for Kevin Deedy. Can you guys talk a little bit more about the Oklahoma site build-out and what you are thinking about currently in Texas?
A – Bruce Rodgers: Sure. Texas has got a counterpart issue, so I don’t think that there’s anything in the short tries and force at this point. Oklahoma, we are up and running, and we will continue to move containers to expand by the year, and that is on the timetable that we discussed earlier, and we’ll update you as the quarter progresses.
The Q&A included follow-ups on machine inventories and build timelines, with some technical difficulties noted during the call. Management reiterated plans to expand the Oklahoma footprint and to evaluate new sites where immersion cooling and curtailment economics make sense. They closed by thanking participants and reaffirming confidence in the strategic shift toward vertically integrated, energy-aware mining operations.
