SCHEDULE: Investment Group Discloses 7.3% Stake in LM Funding America

A group of investment entities led by Milton C. Ault, III, including Hyperscale Data, Inc. and Ault Capital Group, Inc., has disclosed a collective 7.3% beneficial ownership in LM Funding America, Inc.

Summary

• Hyperscale Data, Inc., Ault Capital Group, Inc., and Milton C. Ault, III each beneficially own 891,428 shares of LM Funding America, Inc. common stock, representing approximately 7.3% of the outstanding shares.
• Alpha Structured Finance LP, Alpha Structured Finance GP LLC, and ACG Alpha Management LLC each beneficially own 185,000 shares, or approximately 1.5% of the outstanding shares.
• Ault Lending, LLC beneficially owns 706,428 shares, representing approximately 5.8% of the outstanding shares.
• The aggregate percentage of shares beneficially owned by the Reporting Persons is based on 12,209,413 shares outstanding as of November 11, 2025, as reported in LM Funding America's Form 10-Q filed on November 14, 2025.
• The shares were acquired through open market purchases using working capital, which may include margin loans.
• Alpha Fund purchased 185,000 shares for an aggregate price of $167,963, including brokerage commissions.
• Ault Lending purchased 706,428 shares for an aggregate price of $811,749.40, including brokerage commissions.
• The Reporting Persons intend to engage in discussions with LM Funding America's board of directors and management regarding opportunities to enhance stockholder value.

Sentiment

Score: 7

Explanation: The filing indicates a significant, potentially activist, investment by a group aiming to enhance shareholder value, which is generally a positive signal for the company's prospects, though the outcome of their engagement is uncertain.

Positives

• A significant institutional investor group has taken a substantial stake, indicating potential belief in the company's underlying value.
• The investor group intends to engage with management and the board to enhance stockholder value, which could lead to positive strategic changes or operational improvements.

Negatives

• No specific negative information was disclosed in this Schedule 13D filing, which primarily focuses on ownership disclosure and investment intent.

Risks

• The Reporting Persons may increase or decrease their position in the Issuer, which could introduce volatility to the stock price.
• Future actions by the Reporting Persons could include recommendations or proposals concerning changes to capitalization, ownership structure, or Board composition, which may or may not align with all existing shareholder interests.
• The use of margin loans for share purchases introduces financial leverage risk for the Reporting Persons, though this is not a direct risk to the Issuer.

Future Outlook

The Reporting Persons intend to continuously review their investment in LM Funding America, Inc. and may take various actions, including increasing or decreasing their position, engaging in discussions with management and the Board to enhance stockholder value, proposing changes to capitalization or Board structure, or exploring potential business combinations or dispositions. Their future actions will depend on market conditions, the Issuer's financial performance, and other investment opportunities.

Management Comments

• Milton C. Ault, III serves as CEO and Chief Investment Officer of Alpha Management, Executive Chairman of Ault Capital, and Executive Chairman of Hyperscale.

Industry Context

This filing indicates a significant stake taken by a diversified holding company and investment funds, suggesting a potential activist or strategic investment in LM Funding America. Such investments often signal an intent to influence corporate strategy or governance, which is a common trend in industries where companies may be perceived as undervalued or underperforming.

Comparison to Industry Standards

• NA

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for increased shareholder value through engagement with management and the board, but also potential for volatility if the Reporting Persons significantly alter their position or propose contentious changes.
• Management and Board: Will likely face increased scrutiny and engagement from the Reporting Persons regarding strategic direction and operational performance.

Next Steps

• Reporting Persons may increase or decrease their position in LM Funding America, Inc. shares.
• Reporting Persons intend to engage in discussions with LM Funding America's board of directors and management team.
• Reporting Persons may make recommendations or proposals concerning changes to the Issuer's capitalization, ownership structure, or Board structure.
• Reporting Persons may engage in discussions with other stockholders or third parties about the Issuer and their investment.

Key Dates

Recommendation

The disclosure of a significant stake by an investment group with stated intentions to enhance shareholder value could be a positive catalyst. However, the specific actions and outcomes of their engagement are yet to be seen. Investors should hold and monitor developments, including any proposed changes or further communications from the Reporting Persons or LM Funding America's management.

Keywords

LM Funding America, Hyperscale Data, Ault Capital Group, Milton C. Ault III, Schedule 13D, Beneficial Ownership, Shareholder Activism, Investment, Common Stock, Corporate Governance