Funding America. LMFA focuses on Bitcoin mining and specialty finance. Bruce, the floor is yours.
Thank you, Michael, and hello from sunny Tampa, Florida, where Michael's originally from. I'm Bruce Rodgers, Chairman and Chief Executive Officer of LM Funding America, and this is our presentation, pre-recorded on August 21, 2024 for the H.C. Wainwright 26th Annual Global Investment Conference. Thank you for viewing our presentation, and we hope to visit with you at the H.C. Wainwright Conference in New York City, September 9 through the 11th. LM Funding America is a rapidly expanding Bitcoin miner with a legacy business financing not-for-profit condominium associations that are poised to benefit from changes in Florida law in response to the deadly collapse of a condominium tower in South Florida. Our market cap trades below $10 million, which is roughly equal to the value of our cash and 160 Bitcoins, worth approximately $10.2 million at quarter's end.
Invest $1 in an ETF, and the ETF buys $1 of Bitcoin. Presently, $1 of LM Funding gets the investor about $1 of Bitcoin and our cash. Thank you for watching, so I may explain why we believe the price of Bitcoin is going up and why investors who believe in the value of Bitcoin will find a great value in LM Funding stock. I'll pass through the forward-looking statements that I used to draft as a younger lawyer and, of course, the risk factors, which I encourage everybody to read. It's Bitcoin. LM Funding America is primarily a microcap Bitcoin miner. We have approximately 5,900 miners using 17.6 megawatts to generate 639 petahash. We're good at mining.
Q1 2024, we experienced over 95% average uptime and mined 86.4 Bitcoin, while generating approximately $1.5 million in first quarter net income. We use available debt and equity to purchase mining machines and infrastructure to lower our operating costs and increase our Bitcoin production. We plan to use our cash available to grow our Bitcoin holdings through mining. At June thirtieth, we owned about 160 Bitcoin, worth around $10 million. We have a letter of intent to purchase a producing Bitcoin mining site in Texas, with potentially 72 megawatts of power offered at market prices in the 3-5 cent range. Our goal is to build out and mine all 72 megawatts of power at this site, and we believe this will produce about 1,000 Bitcoin annually at present difficulty rates.
We believe in the overall price trajectory of Bitcoin, and our goal is to HODL our Bitcoin. I've mentioned that we own approximately 5,900 miners, producing 639 petahash of capacity as of June thirtieth. We mined 86 Bitcoin in the first quarter and mined 44 Bitcoin in the second quarter after the halving event. The Bitcoin algorithm reduces the mining rewards by half after every 210,000 blocks are mined. We believe this feature of Bitcoin drives its scarcity and long-range price advances. We hold cash and Bitcoin on our balance sheet, valued at $10.2 million as of July thirty-first. Our market cap is currently around $10.5 million.
Our shareholder equity is $32.5 million, or $13 per share, and our share price has been between $1.62 and $5 per share in the last year. We had net income of $1.9 million in Q1 2024. No Bitcoin ETF sells for a discount to cash in Bitcoin holdings and also has plans to generate more Bitcoin with its assets. Our stock sells for a discount to its Bitcoin and cash, and we plan to use our assets to make more Bitcoin. I love Bitcoin mining as a business. There are no customers and very few employees. LM Funding operates with a total headcount of eight. Rick and I operate as a team. We came together from different backgrounds, and our efforts together have surpassed anything we were able to do before LM Funding.
Together, we have led LM Funding for seven years, through three offerings and our pivot to Bitcoin mining. In our free time, we also sponsored and closed a $100 million SPAC deal in 2022. The U.S. taxpayers were kind enough to send me from a public school in Kentucky to Vanderbilt to get an engineering degree with a Navy ROTC scholarship. I drove an aircraft carrier for a few years to return the thanks, and then you all sent me to law school at the University of Florida on the GI Bill. I practiced corporate securities law as a partner at Foley & Lardner before going on my own and forming LM Funding with my wife and friends at my dining room table in 2007.
We went public in twenty fifteen and had run into some headwinds in twenty seventeen, when Rick Russell joined as CFO. Rick brought public company discipline to LM Funding. He may be the only CFO on NASDAQ with an accounting degree from the University of Alabama, but he has now taken three companies public and operated LM Funding through its pivot to Bitcoin mining in twenty twenty-one. We often get asked, "Why Bitcoin?" Well, my kid, the intern, was living at home during the pandemic, trading crypto, so we had to learn about it. It's a technology that allows people to transfer value without an intermediary for the first time in human history. Call that trustlessness. It's like money. It's clunkier to use, but without inflation risk. It's like gold, only easier to handle with a finite supply.
It's like other crypto, only better because it's truly decentralized and no one can change that. So that's what brought us and others to invest in Bitcoin. Bitcoin investors believe Bitcoin will be here after we're all gone, and it'll be even more scarce and more valuable.... This slide tells you our Bitcoin mining history and why we want to raise money to buy our own hosting sites. In January twenty twenty-one, LM Funding sponsored a SPAC, and Rick and I raised $104 million to get on the other side of the money table and ask startup crypto companies about their businesses. We quickly came to the conclusion that Bitcoin presented the best opportunity for a public company crypto play. In June twenty twenty-one, we purchased Bitcoin for our balance sheet to test our auditors and the SEC's reaction.
In October 2021, we raised $30 million for a full pivot to Bitcoin mining, when Bitcoin had reached an all-time high of $63,000. We purchased 5,046 miners from Bitmain on variable price contracts based upon the price of Bitcoin at delivery. In September 2022, we began accepting delivery of our machines and energizing them when Bitcoin had fallen to $18,000. Consequently, we received $7 million in rebates from Bitmain. In November 2022, Compute North filed for bankruptcy protection, displacing 2,690 of our machines and a loss of our deposit. In December 2022, Core Scientific filed for bankruptcy while hosting 2,980 of our miners. Despite these setbacks, LM Funding has mined 553 Bitcoin and holds 160.5 Bitcoin.
We are now tired of hosting company bankruptcies and inefficiencies. We want to own and control our own power supply. Developing and mining seventy-two megawatts at the Texas site we have under LOI will enable us to focus on our strategic pivot to being a vertically integrated miner. Investing in LM Funding is premised on the value of Bitcoin increasing and the ability to mine Bitcoin at a discount to current Bitcoin spot prices. We believe the value of Bitcoin is driven by its finite supply and the method with which the Bitcoin algorithm permits the creation of additional Bitcoin. The four halving events experienced by Bitcoin have created a track record that correlates to price predictions. Bitcoin halving occurs after every two hundred and ten thousand blocks of Bitcoin are mined. This takes about four years. Past halvings have resulted in higher highs and higher lows.
The spiral graph on the slide illustrates this point. While difficult to see this presentation, it's worth studying a bit. The graph tracks the price of Bitcoin from inception at the center and then tracks it outward as blocks are mined. Clearly, each halving event has been followed by increased Bitcoin prices with higher highs and also higher lows. We have followed forecasts based upon this presentation, and they indicate a price increase from current price of around $60,000, with advances to a new all-time high of around $150,000 predicted for the first quarter of twenty twenty-five and $200,000 by year-end twenty twenty-five. An investment in a Bitcoin ETF will benefit from the predicted increase in Bitcoin price.
An investment in a Bitcoin miner that is buying more mining capacity to generate more Bitcoins at a discount to spot market prices should benefit more. LM Funding's depressed market price creates an opportunity to invest in Bitcoin at roughly the value of our Bitcoin holdings and cash, with the upside created by mining activities that create and accumulate more Bitcoin for us. Pre-halving, LM Funding pursued an infrastructure-light strategy. We used our capital to buy machines to mine Bitcoin and paid hosting fees for infrastructure and electricity. All in, we paid around $0.07 per kilowatt. That covered all expenses, from real estate, to racks, to guys with screwdrivers and electricity. Other than hosting company bankruptcy problems, this worked well. Post-halving, our older machines need cheaper power and can operate profitably in the $0.04-$0.05 range.
Fortunately, the halving has created opportunities to purchase smaller existing hosting facilities, so we plan to initially acquire 2-15 megawatts of hosting in Texas, with the potential to expand up to 72 megawatts. We recently made a $2.8 million secured loan to Arthur Mining. Arthur Mining has used this loan to develop a 15-megawatt site for hosting 3,000 miners for us at pass-through electricity rates through February of 2025. Earning interest on the infrastructure costs while mining at pass-through rates is a very nice way for us to mine, and we expect to do more with Arthur Mining at this Oklahoma site and elsewhere. Presently, our potential hash rate remains static at 639 petahash. Our decreased production reflects that we have around 2,000 miners currently awaiting redeployment to a hosting location.
In August, we announced that LM Funding has entered into a non-binding letter of intent to acquire a mining site in Texas. This site offers 12 megawatts of initial power capacity, with the potential for an additional 60-megawatt expansion. We believe that this acquisition, if completed, will provide us with a cost-effective location to energize all our existing mining machines. Mining site is currently generating 55 petahash of mining capacity using immersion mining techniques. Our primary goal with this acquisition is to invest capital to mine the full potential 72 megawatts. To facilitate these expansion initiatives, we have secured a $5 million non-convertible loan, finalized on August sixth, 2024. The proceeds from this facility will be dedicated to acquiring additional miners and their infrastructure, further bolstering the company's mining capabilities.
Our strategy is to leverage our Bitcoin holdings to finance the acquisition of 72 megawatts of market price power that can be used for Bitcoin mining or resold to the grid. Acquiring the Texas site will provide a home for the balance of our existing mining fleet, along with an existing 55 petahash of mining capacity, an introduction to the advantages of immersion mining. We believe we now have a sound path to grow from our current position to quickly mining 12 megawatts, and then to a steady leverage capital expansion plan aimed at expanding our company's capacity to mine 72 megawatts, which is currently projected to yield about 1,000 Bitcoin annually at current network difficulty rates. But wait, there's more.
We started LM Funding in 2008 at my dining room table with $32,000 and some credit cards, providing funding to condominium associations dealing with the financial pain of the Great Recession. We rapidly grew that business despite our capital constraints, and listed on NASDAQ through an IPO in October of 2015. We continue to operate this business, and today see strong potential arising from changes to Florida law in response to the tragic collapse of a condominium tower in South Florida. Florida law now requires not-for-profit condominium associations to maintain adequate reserves for maintenance and preservation of their buildings. This requirement to fully fund reserves, coupled with the rising insurance costs, have created financial stress for condominium associations and their homeowners. LM Funding has provided funding to condominium associations since 2008.
We have serviced $200 million in condominium association receivables and have developed an extensive database from over 14,000 unique collection events that actuaries have used to value portfolios of our accounts for securitization. We currently see banks servicing the prime market of condominiums consisting of Class A properties, where large special assessments are easily absorbed by wealthy homeowners. We see a larger opportunity in lending and servicing loans to the subprime market of condominium associations, where our past successes with collecting delinquent assessments has produced outsized returns. In 2008, we developed products to address the condominium association crisis when we had little access to capital. As a public company with sixteen years in the industry, we feel poised to grow the condominium financing business rapidly during this new legislatively created chaos in the Florida condominium market.
If we are successful in growing both our Bitcoin and our condominium special finance businesses, we plan to consider splitting the company into two or more listing companies someday, if market conditions permit. Finally, our key statistics. Our current market price is somewhere around $3. We have 2.8 million shares outstanding and a market cap of under $10 million. Our cash in Bitcoin on hand at June 30, 2024 was $10.2 million. Our shareholder equity at June 30, 2024, $32.5 million, for a total shareholder equity at June 30, 2024, of $13.04 per share. So we're selling at quite a discount at a price where we are. Thank you very much for your time, and, and enjoy the rest of the conference.
Thank you, Bruce, and to everyone for attending our conference. We're grateful for your participation and wish you an enjoyable remainder of the conference.