LM Funding America completed a share repurchase of 3,308,575 shares and associated warrants at $2.41 per unit, totaling about $8 million. The repurchase was financed by an $11 million loan from Galaxy Digital, secured by the company’s Bitcoin holdings.
The transaction also involved reacquiring warrants that give the company the right to purchase 7,248,787 shares at an exercise price of $1.10 per share. The repurchase reduces share count and warrants overhang, simplifying the capital structure and aligning market value with the company’s net asset value, which includes a Bitcoin treasury valued at roughly $38 million as of early October 2025.
The loan is a one‑year facility that provides liquidity while the company continues to expand its Bitcoin mining operations, including a recent $4.3 million acquisition of a mining site in Mississippi. Management said the move strengthens the balance sheet and supports future growth amid a challenging revenue environment, where Q2 2025 revenue fell 55% year‑over‑year and the company posted a net income of $60,000 after a $5.4 million loss in Q1 2025.
LM Funding America operates in two segments: a Bitcoin treasury and mining business and a technology‑enabled specialty finance business. While the mining segment has seen capacity growth, the finance segment has experienced revenue declines, contributing to the company’s overall negative net margin of 63.46% in the latest annual period. The share repurchase and loan are part of a broader strategy to reduce dilution, improve capital efficiency, and position the company for future opportunities in both segments.
The transaction closed on October 30, 2025, following the completion of the private placement that closed on August 18, 2025, which raised approximately $23 million to support the Bitcoin treasury strategy and mining expansion.
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