Bimini Capital Management, Inc. Liquidation Value

Bimini Capital Management (BMNM) enters Q1 2026 mid-transition from a leveraged Agency MBS portfolio manager to a diversified asset management firm. The quarter-end balance sheet reflects a dramatically shrunken investment portfolio: MBS at fair value collapsed from $88.9 million at December 31, 2025 to $16.1 million at March 31, 2026, driven by deliberate pre-closing liquidation to fund the April 1, 2026 acquisition of 80% of Tom Johnson Investment Management (TJIM), a $1.6 billion AUM registered investment adviser. Total assets declined to $58.5 million from what the prior 10-K reported as $154.9 million at December 31, 2024, reflecting the portfolio drawdown. Repurchase agreement borrowings fell proportionately from $85.3 million to $15.2 million, reducing but not eliminating short-term leverage exposure.

Under the liquidation lens, equity recovery remains deeply constrained. Reported stockholders' equity is $13.4 million, but the accumulated deficit stands at $316.4 million, confirming years of capital erosion. The MFFAIS CLV/LLV/OLV is consistently negative at approximately -$11.0 million, indicating that even before applying further haircuts, liabilities exceed recoverable asset values. Key non-cash items include $17.0 million in deferred tax assets, which receive a zero recovery haircut under the liquidation lens as they extinguish on windup, and $1.75 million in net PP&E recoverable at perhaps 50-70% (roughly $0.9-1.2 million). The junior subordinated debt ($27.3 million long-term debt total, principally trust preferred securities) remains at face value on the liability side and is the dominant drag on equity recovery alongside the DTA write-off.

The TJIM acquisition closed April 1, 2026—after period end—so the current balance sheet does not reflect the new asset or goodwill/intangibles that will be recognized. Filing discusses TJIM in MD&A but the acquisition accounting (purchase price, goodwill, identifiable intangibles) is not present in the Q1 2026 balance sheet or XBRL tags. This is a material forward-looking consideration: the TJIM consolidation will add intangible assets at zero liquidation value and will consume most of the $16.4 million cash on hand. The Citigroup indemnification demand (pre-2007 mortgage loan purchase agreements) remains an unquantified contingent liability with no accrual; management characterizes likelihood of adverse outcome as remote.