LM Funding America Inc (LMFA)

[Penny Grabber]

Interesting quarter.

Based on an average btc price of 67,500 for the period, even though btc mining was reduced due to the halving and moving mining perations...still reached 3M in revenue for the quarter. Revaluing btc holdings as additional income, btc had an average price of roughly +14,000 higher than last quarter. Times 160. Another 2.2M

Q3 should come in around 5.2-5.5M
Operating costs last quarter were about 4.3M
Estimated earnings for the quarter 1M
Added to last quarters 1.9M for the first 6 months of the year they have a GAAP profit of roughly 3M in 6 months. Market cap is less than 10M. Which is less than the amount of btc held in treasury.

Valuation does not take I to account the partnership of the new 15MW plant. The 5000+ miners that, according to online reports, thebs19s they have still operate at a profit when btc is above 54,000/coin.

The stock price is really limiting growth for thus company. Management is looking for a loan to acquire additional miners because at current levels, raising 5M would dilute ownership 50%.

When they raised 35-40M in 2021 they had nothing going on. Zero bitcoin. Zero miners. Some interest in Borqs (that went defunct). And a SPAC in the works but not yet allocated to. Company to bring public. However, valuation was nearly 100M at one point. 10x current levels.

They keep pointing out their company is worth $15-$16 a share book value. Announcing a share buy back and allocating a couple million to buying back shares would go a long way with this micro cap.

Microstrategy borrows 100s of millions to buy btc, why can't LMFA borrow or use some treasury to buy back it's own stock?

At least they could shoot for an offering down the road to expand. They just don't have any interest in the company from investors.

So they continue to chug along...printing money...paying themselves...with the miners investors funded 3 years ago...who are down 95%

Can they turn it around? Can they be trusted?

Time will tell.

Cheers.