The stock price of the listed mining company is only $0.44, but the value of its held BTC is three times that. What happened?

LM Funding America (NASDAQ: LMFA) released its December 2025 operational report today. The data looks quite promising, but the stock price presents an interesting phenomenon: the company’s book value of BTC holdings far exceeds its market capitalization. What does this reflect? It’s worth a closer look.

Record High Performance, Continued Financing Expansion

December is LMFA’s harvest month. The company mined 7.5 BTC in a single month, setting a new record. At the same time, the company raised approximately $6.1 million through equity financing, using the funds to purchase 47 BTC at an average price of about $87,400 per BTC.

What do these actions indicate? The company is actively expanding. Besides buying coins, the financing is also used to expand its immersion mining facilities in Oklahoma, which is a necessary investment to increase capacity.

Huge Contrast Between Holdings and Stock Price

Even more noteworthy is this comparison:

How large is this difference? Based on the current BTC price of $91,855, the value of LMFA’s BTC holdings has already significantly exceeded its total market cap. In other words, the market’s valuation of this company is less than one-third of its holdings’ asset value.

Why Does This Discrepancy Occur?

This phenomenon is not uncommon among small-cap listed companies, and there are usually several reasons:

• Liquidity issues: As a small-cap stock, LMFA’s trading volume and attention are far lower than those of large mining companies.
• Market expectations gap: Investors may doubt its ongoing profitability, rather than simply valuing its holdings.
• Dilution from financing: Frequent equity financing can lead to dilution, affecting per-share value.
• Risk pricing: The operational risks and market risks of small companies are reflected in discounts.

Future Focus

If the BTC purchased through financing can be successfully converted into increased productivity, the company’s mining capacity will continue to grow. The 7.5 BTC produced in December is already a new high, and if facility expansion proceeds smoothly, this number could rise further.

However, the key point is that the market’s recognition of small-cap mining companies remains relatively low. Even with the asset value clearly in place, whether the stock price can truly reflect this value depends on whether the company can continue to demonstrate operational efficiency and profitability.

Summary

LMFA’s December report indeed reflects performance growth and expansion commitment, and the holdings of 356.3 BTC are not insignificant. However, the huge gap between stock price and asset value highlights the market’s valuation logic for small-cap mining companies—it’s not just about holdings, but also about operational capability. The next step to watch is whether this company can gradually narrow this valuation gap through continuous capacity expansion.