8-K: LM Funding America Boosts Bitcoin Production, Energy Sales

LM Funding America reported increased Bitcoin production and significant energy sales in January 2026, with its Bitcoin treasury valued at $29.1 million.

Summary

• Bitcoin mined, net, increased to 7.8 BTC for January 2026, up from 7.5 BTC in December 2025.
• Bitcoin HODL (held) reached 364.1 BTC as of January 31, 2026, an increase from 356.33 BTC in December 2025.
• The value of Bitcoin holdings was approximately $29.1 million, or $1.36 per share, as of January 31, 2026, based on a Bitcoin price of $79,960.
• The company generated approximately $315,000 in energy and curtailment sales for January, equivalent to nearly 4.0 Bitcoin.
• Operational flexibility was demonstrated by redirecting power back to the grid during Winter Storm Fern to support local energy needs.
• A second immersion container in Oklahoma was brought online, contributing to increased Bitcoin production.
• Total mining machines remained at 7,223, while energized hashrate increased to 0.77 EH/s from 0.75 EH/s.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive operational update, highlighting increased Bitcoin production, successful monetization of energy assets through curtailment sales, and demonstrated operational resilience. The significant Bitcoin treasury value relative to the stock price further underscores the positive sentiment.

Positives

• Increased Bitcoin production to 7.8 BTC in January 2026, demonstrating operational growth.
• Growth in Bitcoin HODL to 364.1 BTC, enhancing the company's digital asset treasury.
• Significant Bitcoin treasury value of $29.1 million, or $1.36 per share, which is substantially higher than the stock share price of $0.40 as of January 30, 2026.
• Successful generation of approximately $315,000 in energy and curtailment sales for January, with effectively no associated marginal costs, providing a valuable revenue offset.
• Demonstrated operational flexibility and resilience by proactively redirecting power during Winter Storm Fern, supporting grid stability and generating revenue.
• Expansion of mining infrastructure by bringing a second immersion container online in Oklahoma, contributing to increased energized hashrate of 0.77 EH/s.

Risks

• Risks inherent in operating in the cryptocurrency mining business.
• Limited operating history in the cryptocurrency mining business and challenges in growing that business.
• Dependence on the capacity of Bitcoin mining machines and the ability to purchase power at reasonable prices.
• Challenges in identifying and acquiring additional mining sites.
• Risks associated with financing site acquisitions and cryptocurrency mining operations.
• Ability to acquire new accounts in the specialty finance business at appropriate prices.
• Impact of changes in governmental regulations that affect the ability to collect sufficient amounts on defaulted consumer receivables.
• Exposure to changes in the credit or capital markets.
• Vulnerability to changes in interest rates.
• Potential negative press regarding the debt collection industry.

Future Outlook

The company expects continued operational flexibility and resilience, with energy and curtailment sales effectively offsetting any potential lost mining revenue. It also anticipates growth in Bitcoin production as new infrastructure, such as the second immersion container in Oklahoma, comes online.

Management Comments

• "In January, our power assets demonstrated the flexibility and resilience of our operating model." Bruce Rodgers, Chairman and CEO of LM Funding.
• "During Winter Storm Fern, we proactively redirected power back to the grid to support local energy needs and help stabilize the grid during a critical period." Bruce Rodgers, Chairman and CEO of LM Funding.
• "As a result, we generated over a quarters worth of our average energy and curtailment sales in a single weekend and are forecasting sales of approximately $315,000 for the month, equivalent to nearly 4.0 Bitcoin." Bruce Rodgers, Chairman and CEO of LM Funding.
• "Even with a weekend of curtailment during Winter Storm Fern, we increased our total Bitcoin production for the month as we brought our second immersion container in Oklahoma online." Ryan Duran, President of USDM.
• "Importantly, our energy and curtailment sales have effectively no associated marginal costs and offsets any potential lost mining revenue." Ryan Duran, President of USDM.

Industry Context

StockSavvy.ai notes that the Bitcoin mining industry faces challenges related to energy costs, grid stability, and Bitcoin price volatility. LM Funding's strategy of leveraging power assets for energy curtailment sales during peak demand periods, such as Winter Storm Fern, demonstrates an adaptive approach to mitigate energy cost risks and generate additional revenue streams, a trend increasingly adopted by miners in volatile energy markets. This dual-revenue model enhances operational resilience compared to pure-play miners.

Stakeholder Impact

• Shareholders: Positive impact due to increased Bitcoin treasury value, higher production, and new revenue streams from energy sales, potentially leading to increased shareholder value. The Bitcoin treasury value per share ($1.36) significantly exceeds the current stock price ($0.40).
• Employees: Continued operational growth and stability could ensure job security and potential expansion within the Bitcoin mining and specialty finance segments.
• Local Communities: Positive impact from the company's role in stabilizing the energy grid during critical periods like Winter Storm Fern, demonstrating corporate responsibility.

Next Steps

• Continue to grow the Bitcoin mining business.
• Identify and acquire additional mining sites.
• Finance site acquisitions and cryptocurrency mining operations.
• Acquire new accounts in the technology-enabled specialty finance business.

Key Dates

Recommendation

The company's January operational update demonstrates robust performance with increased Bitcoin production and a significant, no-marginal-cost revenue stream from energy curtailment, showcasing strong operational flexibility and resilience. The Bitcoin treasury value of $1.36 per share is substantially higher than the current stock price of $0.40, indicating a significant undervaluation relative to its digital asset holdings. This presents a compelling investment opportunity for seasoned investors.

Keywords

Bitcoin mining, cryptocurrency, LMFA, Bitcoin treasury, energy curtailment, hashrate, digital assets, blockchain, specialty finance