LM Funding (LMFA) Q4 2025 earnings call lays out a year of heavy rebuilding and clear-headed scaling: management moved from a single hosted site to two wholly owned facilities, more than doubled its Bitcoin treasury, launched immersion cooling, and worked through integration costs while tracking toward higher production and efficiency into 2026.
Management framed 2025 as transformational, taking the business from an early-stage, single-site miner to a multisite, vertically integrated operator with a simplified capital structure and a larger treasury. The company emphasized creating an operational foundation to support the next growth phase, focusing on owned infrastructure and lower power costs. That foundation is the backdrop for the Q4 numbers and the plan for 2026.
The year included an 11-megawatt acquisition in Columbus, Mississippi, joining the Oklahoma site to bring wholly owned capacity to 26 megawatts. Bitcoin holdings rose materially from roughly 150 BTC at the start of the year to just over 356 BTC by December 31, driven by mining output and targeted purchases. Management called out disciplined accumulation alongside production as a central part of the treasury build.
Production trends improved late in the year with 22 BTC mined in Q4 versus 17.6 BTC in Q3, helped by the Mississippi ramp and cooler conditions that reduced curtailment in Oklahoma. Improved uptime and the integration of new machines pushed energized hash rate to record levels as the company moved into immersion cooling. Despite those operational gains, equity continued to trade at a steep discount to the combined value of the Bitcoin treasury and the productive infrastructure.
The fleet consolidation involved relocating roughly 800 machines from a hosted site to the Oklahoma facility and replacing older S19 JPro units with more efficient S21 and S21 XP miners. That migration delivered lower power costs and margin expansion opportunities. The Mississippi site added about 7.5 megawatts of energized capacity at an attractive power price near $0.036 per kilowatt hour.
Immersion cooling became a live program in Q4 with the initial BC40 Elite immersion container powering 160 S21 immersion miners and contributing roughly 35 petahash. A second immersion container was energized in January, and additional deployments of S21 XP machines followed to lift total energized hash rate. By late February the company reported its highest-ever energized hash rate, reflecting the combined effect of new hardware and immersion efficiency gains.
On the top line, Q4 revenue was reported at about $2.4 million, an 8.7% sequential increase and up 19% year-over-year, driven by the higher coin count. Mining margin compressed to roughly 25% from 49% in Q3, largely because the average Bitcoin price fell and energy sales declined, which squeezed revenue per coin against a relatively fixed cost base. The quarter produced a net loss and a core EBITDA deficit, which management attributed to short-term price moves and the cost of integration and expansion.
The reported Q4 net loss reflected several key items: mark-to-market movements in the Bitcoin treasury tied to lower prices, a noncash impairment on mining equipment driven by the pricing environment, and higher depreciation and operating costs from the Mississippi integration. For the full year, revenue ran near $8.8 million and the company mined around 82.3 BTC, while curtailment and energy sales contributed modestly to results. Year-end asset figures included a Bitcoin position that was materially larger than at the start of the year.
Balance sheet details showed total assets around $51.3 million with Bitcoin holdings representing a material portion, and total liabilities near $22.4 million dominated by the Galaxy loan and a short-term note. The company used available capital to retire equity and warrants, aiming to improve per-share economics, and later renegotiated facility terms to extend near-term flexibility. As of late February 2026 the firm reported holding around 354.7 BTC, which management compared to share count when discussing intrinsic per-share value.
Looking forward, leadership laid out straightforward priorities for 2026: grow production, improve efficiency, and increase Bitcoin per share through operational execution and selective M&A. They said they are targeting accretive acquisitions in the five-to-twenty-megawatt range while also building out available capacity at existing sites. Management emphasized active asset management, low-cost power, and the immersion program as drivers for future value creation.
During Q&A, executives noted the immersion units were performing near current market expectations and that they are actively hunting for additional sites while optimizing existing capacity. Funding decisions are being weighed against the goal of increasing the Bitcoin treasury over multi-year horizons, with an emphasis on the tradeoff between buying miners and acquiring BTC directly. The tone from the call was one of pragmatic scaling: build the infrastructure, tighten unit economics, and close the valuation gap through consistent execution.
