Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LM Funding America Inc (LMFA, Financial) has strategically shifted its mining operations to more cost-effective facilities following the Bitcoin halving event, which is expected to enhance operational efficiency.
- The company has approximately 3,700 Bitcoin mining machines in operation and an additional 2,200 miners ready to be redeployed, providing a total of 639 Petahash of mining capacity.
- Operating expenses decreased by $1 million year-over-year, primarily due to a $2 million reduction in digital mining costs.
- LMFA achieved positive EBITDA for the first nine months of 2024, amounting to $0.6 million, driven by expanded Bitcoin operations.
- The company is committed to reinvesting mining revenue into expanding capacity with state-of-the-art miners and integrating advanced technologies to boost efficiency.
Negative Points
- Total revenue for the third quarter of 2024 was approximately $1.3 million, a decrease of $2.1 million from the same period last year, reflecting the impact of the Bitcoin halving event.
- The company reported a net loss of $1.6 million in Q3 2024, compared to a loss of $0.6 million in Q3 2023.
- There is uncertainty regarding the expansion of a potential site in Texas, with power validation and expansion plans still pending.
- The company is operating at 60% capacity due to the relocation of miners, and full deployment of machines is not expected until the end of the year or early January.
- The Florida real estate market, a segment of LMFA's business, faces legislative uncertainties that may impact future opportunities and demand.
Q & A Highlights
Q: Can you provide details on the current status of your mining operations and future hash rate expectations?
A: Richard Russell, CFO: We have about 3,300 machines in Oklahoma and 800 in Kentucky, with 2,200 more in a warehouse in Oklahoma. We aim to have these operational by year-end or early January. Currently, we're at about 60% capacity.
Q: What is the power rate in Oklahoma, and is it sustainable?
A: Ryan Duran, President US Digital and Mining Co: The power rate is around 4¢ per kilowatt-hour, fluctuating between 3.8¢ and 4.2¢. We expect this rate to remain stable for the foreseeable future.
Q: Are there any updates on the potential expansion in Texas?
A: Richard Russell, CFO: The Texas site requires power validation for a 60-megawatt expansion. We expect to know by year-end whether we can proceed.
Q: How are you approaching new rig purchases?
A: Ryan Duran, President US Digital and Mining Co: We evaluate new models and potential deals, focusing on payback periods. We're considering older models like the K pros for future purchases.
Q: What is the focus of your strategic shift post-Bitcoin halving?
A: Ryan Duran, President US Digital and Mining Co: We are moving towards vertical integration, securing low-cost, sustainable power sources, and expanding our infrastructure to enhance operational efficiency and growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
