8-K: LM Funding America Reports Q1 2026 Results

LM Funding America, Inc. reported Q1 2026 financial results showing a net loss of $10.1 million, impacted by fair value adjustments on digital assets, despite record hashrate and Bitcoin production.

Summary

• LM Funding America, Inc. reported financial results for the three months ended March 31, 2026.
• Total revenue for the quarter was $2.1 million, a decrease of 10.9% sequentially and 11.1% year-over-year, attributed to lower average Bitcoin prices.
• The company mined 26.1 Bitcoin in Q1 2026, an increase from prior periods due to higher energized hashrate.
• Mining margin was 24.1% in Q1 2026, down from 38.5% in Q1 2025.
• A significant negative fair market value adjustment of $3.8 million on mined digital assets and $3.2 million on Bitcoin collateral receivable contributed to the net loss.
• The net loss for Q1 2026 was approximately $10.1 million, with a Core EBITDA loss of $8.4 million, compared to a net loss of $5.4 million and Core EBITDA loss of $2.8 million in Q1 2025.
• As of March 31, 2026, cash was $0.8 million, and Bitcoin holdings were 338.2 Bitcoin, valued at approximately $23.1 million.
• The company achieved a record energized hashrate of approximately 790 PH/s in March 2026 and produced a record 9.6 Bitcoin in March 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to increased net losses, reduced margins, and lower revenues, despite operational achievements like record hashrate.

Positives

• Reached a record energized hashrate of approximately 790 PH/s in March 2026.
• Achieved the highest monthly Bitcoin production in company history with 9.6 BTC in March 2026.
• Increased Bitcoin production in Q1 2026 compared to prior periods due to higher energized hashrate.
• Generated approximately $368,000 in curtailment and energy sales for the 2026 quarter, up from $150,000 in Q1 2025.
• Extended the Galaxy Digital facility maturity to June 26, 2026.
• The company's balance sheet is positioned to support continued operating execution and selective accretive growth.

Negatives

• Total revenue decreased 10.9% sequentially and 11.1% year-over-year to $2.1 million.
• Mining margin decreased to 24.1% in Q1 2026 from 38.5% in Q1 2025.
• Incurred a $3.8 million negative fair market value adjustment on mined digital assets.
• Incurred a $3.2 million negative fair market value adjustment on Bitcoin collateral receivable.
• Reported a net loss of approximately $10.1 million for Q1 2026, an increase from $5.4 million in Q1 2025.
• Reported a Core EBITDA loss of approximately $8.4 million for Q1 2026, an increase from $2.8 million in Q1 2025.
• Cash balance decreased to $0.8 million as of March 31, 2026, from $1.4 million as of December 31, 2025.

Risks

• Volatility in the market price of Bitcoin.
• Operating in the cryptocurrency mining business.
• Limited operating history in the cryptocurrency mining business and ability to grow.
• Capacity of Bitcoin mining machines and ability to purchase power at reasonable prices.
• Ability to identify and acquire additional mining sites.
• Ability to finance site acquisitions and cryptocurrency mining operations.
• Risks associated with growing Bitcoin treasury operations and strategy.
• Changes in governmental regulations affecting collection on defaulted consumer receivables.

Future Outlook

The company's priority is execution and closing the gap between its public valuation and the underlying value of its Bitcoin holdings and platform. The deployed S19 XP, S21, and S21 immersion fleet is expected to retain its competitive position in the network meaningfully longer than equivalent hardware would have in prior cycles.

Management Comments

• "The first quarter reflected strong operating performance in a softer Bitcoin price environment," said Bruce Rodgers, Chairman and Chief Executive Officer of LM Funding. "We increased production, reached record hashrate, and maintained margins from the fourth quarter 2025, while remaining focused on our Bitcoin mining and treasury strategy. Our priority is execution and closing the gap between our public valuation and the underlying value of our Bitcoin holdings and platform."
• "The first quarter was the first full period during which our expanded fleet operated at scale across both wholly-owned sites," said Ryan Duran, President of U.S. Digital Mining. "We produced 26.1 Bitcoin across Oklahoma and Mississippi, energized our second BC40 Elite immersion-cooled unit at Oklahoma in January, and deployed approximately 300 Bitmain S19 XP miners at Oklahoma in late February driving energized hashrate to approximately 790 PH/s in March, the highest in the Company's history. With ASIC efficiency gains compressing across recent generations, we believe our deployed S19 XP, S21, and S21 immersion fleet will retain its competitive position in the network meaningfully longer than equivalent hardware would have in prior cycles."
• "First quarter revenue declined approximately 11% year-over-year to $2.1 million, primarily reflecting a lower average realized Bitcoin price, partially offset by a 19% sequential increase in Bitcoin production," said Richard Russell, Chief Financial Officer of LM Funding. "Mining margin held at approximately 24%, in line with the 25% fourth quarter 2025 mining margin, supported by approximately $368,000 of curtailment and energy sales. The reported net loss of $10.1 million and Core EBITDA2 loss of $8.4 million were driven primarily by approximately $7.0 million of non-cash Bitcoin fair value adjustments and ongoing operating costs of the expanded platform. We extended the Galaxy Digital facility maturity to June 26, 2026 during the quarter and ended the period with $41.8 million of total assets, a 338.2 Bitcoin treasury, and $22.7 million of total liabilities a balance sheet that we believe is positioned to support continued operating execution and selective accretive growth."

Industry Context

StockSavvy.ai notes that LM Funding America's Q1 2026 results reflect the challenging environment for Bitcoin miners, characterized by lower Bitcoin prices impacting revenue and margins. Despite this, the company's focus on increasing hashrate and production efficiency aligns with industry trends of scaling operations to maintain competitiveness.

Comparison to Industry Standards

• The reported mining margin of 24.1% is below the 38.5% achieved in Q1 2025, indicating a compression in profitability common among Bitcoin miners facing lower Bitcoin prices.
• The company's record hashrate of 790 PH/s in March 2026 positions it among miners investing in newer, more efficient hardware, a trend seen across the industry to combat rising difficulty and energy costs.
• The significant non-cash fair value adjustments on digital assets are a common occurrence for companies holding Bitcoin on their balance sheets, impacting reported net income but not necessarily operational cash flow.

Related Party Transactions

• Due to related parties was $64,857 as of March 31, 2026.

Stakeholder Impact

• Shareholders may be impacted by the increased net loss and negative fair value adjustments, potentially affecting stock valuation.
• Creditors may be concerned by the reduced cash balance and increased losses, though the company states its balance sheet is positioned to support operations.
• Employees may face uncertainty due to the financial performance, though management emphasizes continued execution.

Next Steps

• Continue operating and executing on the Bitcoin mining and treasury strategy.
• Focus on closing the gap between public valuation and the underlying value of Bitcoin holdings and platform.
• Leverage the deployed S19 XP, S21, and S21 immersion fleet for competitive positioning.

Key Dates

Recommendation

While the company achieved operational milestones like record hashrate and production, the significant increase in net loss, reduced margins, and lower revenues due to Bitcoin price volatility present considerable risks. The current valuation may not fully reflect these challenges, warranting a hold position until operational improvements translate into improved financial performance and a clearer path to profitability.

Keywords

Bitcoin mining, LM Funding America, LMFA, Q1 2026, financial results, hashrate, digital assets, cryptocurrency