LM Funding America (NASDAQ:LMFA) reported improved Bitcoin mining production and record energized hash rate in the first quarter of 2026, even as lower Bitcoin prices weighed on revenue and drove a larger reported net loss through non-cash fair value adjustments.
Chairman and Chief Executive Officer Bruce Rodgers said the quarter marked the first full period in which the company’s expanded mining platform operated at scale after completing site integrations in 2025. LM Funding mined 26.1 Bitcoin during the quarter, up from 22 Bitcoin in the fourth quarter of 2025.
“While Bitcoin price weakness is driving the reported financial results, the underlying operating profile improved across every relevant measure,” Rodgers said, citing Bitcoin produced, energized hash rate, fleet efficiency and uptime.
Bitcoin Treasury Value Rebounded After Quarter-End
LM Funding ended March 31, 2026, with 338.2 Bitcoin valued at approximately $23.1 million. Rodgers said the value of the company’s Bitcoin holdings recovered after the quarter ended, with 334 Bitcoin valued at approximately $25.3 million on April 30 and approximately $27.3 million earlier in the week of the call.
Chief Financial Officer Richard Russell said the March 31 Bitcoin treasury value equated to approximately $1.06 per diluted share. By April 30, the company held 334 Bitcoin, including 174 Bitcoin held by Galaxy Digital as collateral, valued at approximately $25.3 million, or $1.18 per diluted share, based on a Bitcoin price of approximately $75,800. As of May 11, Russell said the treasury was valued at approximately $27.3 million, or $1.27 per diluted share, based on a Bitcoin price of approximately $81,700.
Management repeatedly said the company’s common equity continues to trade at a material discount to the value of its Bitcoin holdings alone. Russell said the Bitcoin price recovery since March 31 represented roughly $5 million of incremental fair value across the company’s holdings.
Revenue Declines as Bitcoin Price Falls
Total revenue for the first quarter was approximately $2.1 million, compared with $2.4 million in the fourth quarter of 2025 and $2.4 million in the first quarter of 2025. Russell said the year-over-year decline of about 11% reflected a significantly lower Bitcoin price, partly offset by the 19% sequential increase in Bitcoin produced.
Mining margin was approximately 24.1% in the first quarter, compared with 25% in the fourth quarter of 2025. Russell said the margin was supported by approximately $368,000 in curtailment and energy sales, which were recognized as a reduction of cost of revenues. The average Bitcoin price declined to approximately $75,700 in the first quarter from approximately $99,700 in the fourth quarter of 2025.
The company reported a first-quarter net loss of approximately $10.1 million and a core EBITDA loss of approximately $8.4 million. In the first quarter of 2025, LM Funding reported a net loss of $5.4 million and a core EBITDA loss of $2.8 million.
Russell said the 2026 first-quarter net loss reflected a $7 million negative fair market value adjustment on mined digital assets and Bitcoin collateral receivable as Bitcoin fell from approximately $87,500 at year-end to approximately $68,300 on March 31. He said applying the May 11 Bitcoin price to the March 31 balance sheet on a pro forma basis would reduce the reported first-quarter net loss by a comparable amount.
Net adjusted cash flow used in operations was approximately $200,000 after adding back $3.1 million of proceeds from the sale of digital assets to $3.3 million of net cash used in operating activities.
Mining Operations Expand Across Oklahoma and Mississippi
Ryan Duran, President of U.S. Digital Mining, said the first quarter was the first full period in which the expanded fleet operated at scale across both sites. He said energized hash rate increased from approximately 750 petahash at year-end to about 790 petahash at quarter-end.
In January, LM Funding energized its second BC40 Elite immersion-cooled unit in Oklahoma, adding approximately 35 petahash through 160 Bitmain S21 Immersion miners. Duran said Winter Storm Fern also demonstrated the value of the company’s grid relationships. LM Funding curtailed mining operations and redirected power to the grid, generating approximately $305,000 in energy and curtailment revenue in January, with most of that earned over three days during the storm. Duran said that amount was equivalent to roughly 4 Bitcoin.
In late February, the company deployed approximately 300 Bitmain S19 XP miners in Oklahoma, replacing older hardware and reallocating higher-terahash units to Mississippi. Duran said the upgrade lifted February production to 8.7 Bitcoin, followed by 9.6 Bitcoin in March.
Duran said the company expects seasonal headwinds in the second quarter as warmer temperatures affect mining efficiency and output. He said LM Funding will continue evaluating incremental fleet upgrades to partially offset those effects.
Balance Sheet and Galaxy Facility
As of March 31, LM Funding had total assets of approximately $41.8 million, including Bitcoin holdings valued at approximately $23.1 million and cash of approximately $800,000. Total liabilities were approximately $22.7 million, essentially flat with year-end 2025.
Russell said liabilities primarily consisted of a $10.9 million Galaxy Digital master digital currency loan and approximately $8.7 million of other notes payable, of which $1.9 million was long term. During the quarter, the company extended the maturity date of the Galaxy facility to June 26, 2026, which management said provides flexibility to evaluate settlement options as Bitcoin market conditions evolve.
Management Sees Opportunity in Smaller Power Sites
Rodgers said LM Funding remains focused on being a Bitcoin mining and treasury company. He said the company plans to acquire and mine Bitcoin using low-cost power that may not currently suit high-performance computing or artificial intelligence workloads but could in the future as those demands evolve.
The company continues to evaluate selective expansion opportunities in the 5-megawatt to 20-megawatt range, including additional capacity in Mississippi. Rodgers said those sites fall below the scale typically required for hyperscaler hosting and appear to be increasingly available at attractive prices for both power and acquisition cost.
During the question-and-answer session, Maxim Group analyst Matthew Golinko asked how slower efficiency gains across ASIC generations influence the company’s approach to adding hash rate. Rodgers said decisions are driven by electricity tariffs, site costs and payback time, adding that those factors can lead the company toward used equipment or “second from the fastest generation” machines when the economics are favorable.
Golinko also asked about the pipeline for 5-megawatt to 20-megawatt sites. Rodgers said the pipeline is robust, but many potential sites fail due diligence because of power delivery limits, transformer and substation requirements, environmental issues, noise, heat or proximity to residential areas, churches or schools. He described the market for such sites as a “buyer’s market” but said deal activity has been slowed by “price reconciliation.”
Rodgers said LM Funding’s priorities for the remainder of 2026 are to grow Bitcoin production, improve fleet efficiency, increase Bitcoin per share and evaluate accretive acquisitions with the same value discipline used in the company’s Mississippi acquisition.
About LM Funding America (NASDAQ:LMFA)
LM Funding America, Inc, headquartered in Miami, Florida, is a specialty finance company that provides retail installment contracts to subprime borrowers. The company originates, acquires, and manages motor vehicle retail financing through a network of franchised and independent automobile dealerships across the United States. LM Funding America holds and services its loan portfolio through its wholly owned subsidiary, LM Funding America Service Corp., and offers floorplan financing to new and used vehicle dealers through LM Funding Floorplan LLC.
Established in 2013, LM Funding America completed its initial public offering on the Nasdaq Stock Market in 2015, enabling the company to expand its lending operations and geographic presence.
