Here are 1-2 brief analogies to describe LM Funding America (LMFA):

• J.G. Wentworth for active lawsuits: Similar to how J.G. Wentworth buys future annuity payments for immediate cash, LMFA provides funding to individuals or businesses in exchange for a share of potential future lawsuit settlements.
• OnDeck for less traditional business receivables: Like OnDeck provides alternative business loans that traditional banks might not, LMFA specializes in providing working capital by funding niche or harder-to-finance business receivables, such as medical or insurance claims.

Major Products/Services of LM Funding America (LMFA):

• Specialty Finance for Businesses: Provides working capital and acquisition financing to small and medium-sized businesses.
• Pre-settlement Legal Funding: Offers non-recourse advances to plaintiffs or law firms awaiting settlement of legal claims.
• Real Estate-Backed Lending: Originates loans primarily secured by commercial or residential real estate properties.
• Digital Asset Mining: Operates facilities to mine cryptocurrencies, primarily Bitcoin, for revenue generation.

Bruce M. Rodgers, Chairman of the Board, Chief Executive Officer and President

Mr. Rodgers serves as the Chairman of the Board of Directors, Chief Executive Officer, and President of LM Funding America, Inc.. Before this role, he owned Business Law Group, P.A. ("BLG") and was counsel to the founders of LM Funding, LLC, the company's predecessor and wholly-owned subsidiary, playing a key role in developing its business model. He transferred his interest in BLG before the company went public in 2015. Mr. Rodgers also served as Chief Executive Officer, President, and Chairman of the Board of Directors of LMF Acquisition Opportunities Inc., a Nasdaq-listed special purpose acquisition public company, from December 2020 to October 2022. He is a former business transactions attorney, having been an associate and partner at Macfarlane, Ferguson, & McMullen, P.A. (1991-1998) and an equity partner at Foley & Lardner LLP (1998-2003). Mr. Rodgers holds an engineering degree from Vanderbilt University and a Juris Doctor from the University of Florida.

Richard D. Russell, Chief Financial Officer and Principal Accounting Officer

Mr. Russell has served as the Chief Financial Officer of LM Funding America since November 2017. Since 2016, he has provided financial and accounting consulting services with expertise in technical and external reporting, internal auditing, mergers & acquisitions, risk management, and CFO and controller services. He was the Chief Financial Officer for Mission Health Communities from 2013 to 2016. Prior to that, Mr. Russell held various positions at Cott Corporation from 2007 to 2013, including Senior Director of Finance, Senior Director of Internal Auditing, and Assistant Corporate Controller. Mr. Russell also served as Chief Financial Officer and a director of LMF Acquisition Opportunities Inc., a publicly traded special purpose acquisition company, from January 2021 until its merger in October 2022. Additionally, he served part-time as Chief Financial Officer of Generation Income Properties Inc. ("GIPR"), a publicly traded real estate company, from December 2019 to February 2022. He holds a Bachelor of Science in accounting and a Master's in tax accounting from the University of Alabama, a Bachelor of Arts in international studies from the University of South Florida, and an MBA from the University of Tampa.

Ryan Duran, Vice President, Operations and President, US Digital Mining and Hosting Co.

Mr. Duran has been with LM Funding America since March 2015. Before joining the company, he served as Operations Manager of Business Law Group starting in 2008. Mr. Duran holds a Bachelor's Degree in Real Estate and Finance from Florida State University.

Todd Liebel, Vice President of U.S. Digital Mining & Hosting Co.

Mr. Liebel joined LM Funding America in September 2019. Prior to his current role, he served as an analyst for Pursuant Capital. Mr. Liebel holds a Bachelor's Degree in Entrepreneurial Studies from the University of Tampa.

1. Risks of operating in the cryptocurrency mining business: LM Funding America has a limited operating history in the cryptocurrency mining business and faces challenges in growing this segment. Key concerns include the capacity of its Bitcoin mining machines, the ability to purchase power at reasonable prices, and the identification and acquisition of additional mining sites. The company also faces risks related to financing its site acquisitions and cryptocurrency mining operations. The inherent volatility of cryptocurrency market prices also presents a significant risk to the company's performance.
2. Financial challenges and profitability issues: The company has reported negative margins and declining revenue, including a net loss and a core EBITDA loss, partly due to increased staff costs and payroll expenses. The cost of mining one Bitcoin remains a substantial expense for LMFA. The company's low market capitalization and a concerning cash burn rate further highlight its financial vulnerability.
3. Risks related to the specialty finance business: In its specialty finance segment, LM Funding America faces risks associated with acquiring new accounts at appropriate prices and potential changes in governmental regulations that could impact its ability to collect sufficient amounts on defaulted consumer receivables.

The rapid industrialization and consolidation of the Bitcoin mining industry by large, well-capitalized public companies. These larger entities are deploying cutting-edge hardware at massive scale, securing favorable energy contracts, and benefiting from significant economies of scale. This emerging trend makes it increasingly challenging for smaller, less capitalized miners like LMFA to compete effectively on efficiency, cost, and hash rate, thereby increasing capital requirements and operational sophistication needed to remain competitive in the sector.

LM Funding America (LMFA) operates in two primary market segments: specialty finance and cryptocurrency mining operations.

Specialty Finance

LM Funding America's specialty finance segment focuses on providing funding solutions to non-profit community associations, including homeowner associations (HOAs) and condominium associations. This service primarily involves purchasing delinquent accounts receivable from these associations, allowing them to recover funds more quickly. The company's operations in this segment are primarily concentrated in Florida, with additional presence in Washington, Colorado, and Illinois. While a precise addressable market size specifically for "funding delinquent accounts receivable for community associations in select U.S. states" is not readily available, the broader U.S. market for community association services and financing is substantial. However, without more specific data on this niche, it is difficult to quantify a precise addressable market.

Cryptocurrency Mining Operations

LM Funding America is also engaged in Bitcoin mining operations, having strategically pivoted towards this sector as a Bitcoin treasury and mining company. The company has been building its Bitcoin reserves and operating mining infrastructure in the United States, including a facility in Oklahoma and Mississippi. The global cryptocurrency mining market is a dynamic and growing sector, but a specific addressable market size for LMFA's particular scale and operational focus (U.S.-based Bitcoin mining with a treasury strategy) is not explicitly defined in the provided information.

Given the highly specialized nature of LM Funding America's specialty finance product within the community association sector and the evolving and specific operational model within the cryptocurrency mining industry, precise, independently verifiable addressable market sizes for their main products or services are not explicitly available in the provided information. Therefore, a specific market size cannot be identified beyond the qualitative descriptions.

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LM Funding America (NASDAQ: LMFA) is expected to drive future revenue growth over the next 2-3 years through several key initiatives, primarily centered around its cryptocurrency mining operations and, to a lesser extent, its specialty finance segment.

Here are 3-5 expected drivers of future revenue growth:

1. Expansion of Bitcoin Mining Capacity: LM Funding America is actively increasing its Bitcoin mining capacity through strategic acquisitions and partnerships. This includes plans to acquire a mining site in Texas with an initial power capacity of 12 megawatts, expandable to 72 megawatts, and a partnership with Arthur Mining to establish a 15-megawatt hosting facility near Oklahoma City. The company also secured a $5 million nonconvertible loan specifically for acquiring additional mining capabilities. Expanding the number of operational mining machines and petahash capacity directly correlates with the potential to mine more Bitcoin, thereby increasing digital mining revenue.
2. Increased Operational Efficiency and Vertical Integration in Bitcoin Mining: The company is pursuing a strategic shift towards vertical integration, aiming to lower operating costs by sourcing low-cost power and relocating mining operations to more cost-effective sites. This strategy includes moving away from expensive hosting contracts and acquiring more efficient miners, such as S21s at 17.5 joules/TH, to minimize operational losses and improve net margins per Bitcoin mined. Improved efficiency allows for greater profitability and the potential to scale operations more effectively, even in a post-halving environment.
3. Leveraging Bitcoin Price Appreciation: While not directly controlled by the company, the market price of Bitcoin is a significant driver of LMFA's digital mining revenue. The company has highlighted optimism for the future due to rising Bitcoin prices, and holds substantial Bitcoin assets, which gain value with price increases. Continued appreciation in the value of Bitcoin would directly translate to higher revenue generated from the Bitcoins mined and held by the company.
4. Growth in the Specialty Finance Segment: LM Funding America also operates a technology-based specialty finance company that provides funding to non-profit community associations, primarily in Florida, Washington, Colorado, and Illinois. This segment has maintained stable revenue, and a changing legislative environment has been noted as potentially creating opportunities for loan growth due to increased assessments. Expanding the reach or volume of funding within this segment could contribute to overall revenue growth.

Share Repurchases

• LM Funding America executed a private repurchase of 3,308,575 shares of common stock and associated warrants for approximately $8.0 million, which closed on October 30, 2025. This repurchase was intended to reduce warrant overhang and simplify the capital structure.
• On November 3, 2025, the Board of Directors authorized a new share repurchase program to buy back up to $1.5 million of outstanding common stock. This authorization represents approximately 15% of the company's shares outstanding after the October 30, 2025 private repurchase.

Share Issuance

• In August 2025, LM Funding America completed a $12.6 million registered direct offering and a $10.4 million private placement, raising combined gross proceeds of approximately $23.0 million. The net proceeds from these offerings were primarily designated for purchasing additional Bitcoin for the company's treasury.
• A private placement financing closed on August 18, 2025, which involved the issuance of common stock and associated warrants.

Outbound Investments

• LM Funding America acquired 164 Bitcoin in August 2025, significantly increasing its Bitcoin treasury to 311.2 BTC, funded through recently closed financing.
• In September 2025, the company acquired a mining site in Mississippi for $4.3 million. This acquisition enhanced production and hashing power, and was funded entirely from the balance sheet.
• In October 2025, LM Funding America acquired 320 Bitmain S21 immersion-cooled machines for expansion in Oklahoma.

Capital Expenditures

• For the first quarter of 2025, capital expenditures totaled $(170,073).
• The company's capital expenditures were reported as $1.7 million in 2024, $1.6 million in 2023, and $15,382 in 2022.
• In October 2025, Bitcoin was sold to help fund the purchase of Bitmain S21 immersion-cooled machines, indicating capital allocation towards mining equipment.