8-K: LM Funding November Bitcoin Update: Expansion On Track

LM Funding America announced its November 2025 Bitcoin production and operational update, highlighting a slight decrease in mined Bitcoin due to energy curtailment but confirming its Oklahoma expansion is on schedule.

Summary

• Bitcoin mined, net, for November 2025 was 6.9 BTC, a decrease from 7.5 BTC in October 2025.
• The company's Bitcoin HODL (held) increased to 301.8 BTC as of November 30, 2025, up from 294.9 BTC in October 2025.
• The Bitcoin treasury was valued at approximately $27.5 million as of November 30, 2025, based on a Bitcoin price of approximately $91,100.
• The Bitcoin treasury value translates to $2.25 per share, calculated using 12,209,413 shares outstanding as of November 30, 2025.
• The company's stock share price was $0.99 as of November 30, 2025.
• Energy curtailment and sales generated approximately $76,000 in revenue during November by selling energy back to the grid.
• Total mining machines remained at 7,930, with 4,320 in Oklahoma, 2,376 in Mississippi, and 1,234 in storage.
• Total energized hashrate remained at 0.71 EH/s, with 0.48 EH/s in Oklahoma and 0.23 EH/s in Mississippi.
• A 2 MW immersion expansion in Oklahoma is on schedule for energization by the end of December 2025, expected to increase total hashrate by nearly 10%.

Sentiment

Score: 7

Explanation: The company reported steady operational progress, successfully leveraged energy curtailment for revenue, and confirmed its significant Oklahoma expansion is on schedule. While Bitcoin production was slightly down, it was a strategic decision. The substantial difference between Bitcoin treasury value per share and the stock price presents an interesting valuation point.

Positives

• Bitcoin HODL increased to 301.8 BTC as of November 30, 2025.
• The Bitcoin treasury is valued at $27.5 million, or $2.25 per share, which is significantly higher than the stock price of $0.99 per share as of November 30, 2025.
• Strategic energy curtailment during a late-month spike in power prices generated approximately $76,000 in additional revenue.
• The 2 MW immersion expansion in Oklahoma is on schedule for energization by the end of December, projected to increase total hashrate by nearly 10%.
• Management emphasizes a disciplined approach to growth and capital allocation.

Negatives

• Bitcoin mined decreased slightly to 6.9 BTC in November from 7.5 BTC in October.
• The company's stock price of $0.99 is substantially lower than the Bitcoin treasury value per share of $2.25.

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.
• Ability to finance site acquisitions and cryptocurrency mining operations.
• Risks associated with the specialty finance business, including acquiring new accounts at appropriate prices.
• Changes in governmental regulations that could affect the ability to collect sufficient amounts on defaulted consumer receivables.
• Exposure to changes in the credit or capital markets.
• Impact of changes in interest rates.
• Potential negative press regarding the debt collection industry.

Future Outlook

The 2 MW immersion expansion in Oklahoma is on schedule for energization by the end of December 2025, which is expected to increase the total hashrate by nearly 10%. Management plans to continue monitoring market conditions closely and maintain a disciplined approach to growth and capital allocation.

Management Comments

• "November was another month of steady operational progress across our mining business."
• "Bitcoin production was slightly lower as we took advantage of a late-month spike in power prices and curtailed mining to sell energy back to the grid, generating approximately $76,000 in curtailment and energy sales."
• "Our 2 MW immersion expansion in Oklahoma is on schedule for energization by the end of the month, which we expect will increase our total hashrate by nearly 10%."
• "We continue to monitor market conditions closely and believe our disciplined approach to growth and capital allocation positions us well heading into year-end."

Industry Context

The cryptocurrency mining industry is highly sensitive to Bitcoin price fluctuations and energy costs. LM Funding's strategy of energy curtailment to sell power back to the grid during price spikes demonstrates an adaptive approach to managing operational costs and generating additional revenue, a practice increasingly adopted by miners to optimize profitability in volatile energy markets. The planned hashrate expansion aligns with the broader industry trend of increasing mining capacity to capture a larger share of block rewards.

Stakeholder Impact

• Shareholders: Potential positive impact from increased hashrate and Bitcoin holdings, but current stock price significantly undervalues the Bitcoin treasury. Strategic energy sales add to revenue.
• Employees: Continued operational stability and expansion could imply job security or growth opportunities in the mining division.
• Customers (Specialty Finance): No direct impact mentioned in this filing, but the company's other business line is specialty finance.
• Suppliers (Energy): The company's ability to sell energy back to the grid indicates a dynamic relationship with energy suppliers/grid operators.

Next Steps

• Energization of the 2 MW immersion expansion in Oklahoma by the end of December 2025.
• Continue to monitor market conditions closely.
• Maintain a disciplined approach to growth and capital allocation.

Key Dates

Recommendation

The company demonstrated steady operational progress, strategically curtailed mining to generate additional revenue from energy sales, and has a significant hashrate expansion on schedule. The Bitcoin treasury value per share is substantially higher than the current stock price, which could indicate undervaluation or market skepticism regarding other aspects of the business or future Bitcoin price. Given the mixed signals of strategic operational success and market valuation disparity, a 'hold' recommendation is appropriate pending further clarity on the market's perception and the execution of future growth plans.

Keywords

Bitcoin mining, cryptocurrency, LMFA, Bitcoin treasury, energy curtailment, hashrate, Oklahoma expansion, specialty finance, production update