Bimini Capital Management, Inc.

What they do

Bimini Capital operates two segments: an investment portfolio that holds Agency MBS (pass-throughs, CMOs, IOs, IIOs, POs) and Orchid common stock, and an asset management segment where Bimini Advisors, LLC serves as Orchid's external manager. The investment portfolio earns interest and dividend income; the asset management segment earns management fees and expense reimbursements.

Revenue drivers

• Advisory services (asset management segment) — Earns monthly management fees from Orchid based on Orchid's equity (1.5% on first $250M, 1.25% on next $250M, 1.0% above $500M) plus expense reimbursements. Q2 2026 revenue was $6.8M.
• Investment portfolio (Royal Palm Capital) — Generates interest and dividend income from Agency MBS and Orchid stock. Q2 2026 gross interest and dividend income was $0.41M, net interest income of $0.27M after repo funding costs.
• Pending acquisition of TJIM — Acquired 80% of TJIM, a registered investment adviser with $1.7B in regulatory AUM, expected to add management fees from diverse accounts, sub-advisory, and wrap programs.

Recent performance

For Q2 2026, Bimini reported net income of $0.4M ($0.04 per share), up from $0.04M in Q2 2025. Six-month 2026 net income was $1.2M ($0.12 per share) versus $0.5M ($0.06) in 2025. Quarterly revenue rose from $6.2M in Q3 2025 to $7.2M in Q2 2026. The company had total assets of $64.4M and shareholder equity of $13.8M as of June 30, 2026.

Strategy

Management is transitioning Bimini into a pure asset management firm with a more diverse mix of assets. The TJIM acquisition, completed April 1, 2026, adds $1.7B in AUM across equity, fixed income, and balanced strategies. The investment portfolio has been deliberately reduced to fund the acquisition, reducing its contribution to income. Bimini retains put/call rights to acquire the remaining 20% of TJIM, and intends to keep TJIM's staff and investment team.

Risks

• Interest rate sensitivity — Adverse rate movements can reduce MBS values and increase borrowing costs, compressing net interest margins and potentially causing losses.
• Prepayment risk — Changes in mortgage prepayment speeds can reduce the value of its structured Agency MBS (IOs, IIOs, POs).
• Dependence on Orchid — Management fees are tied to Orchid's equity; a decline in Orchid's equity or termination of the agreement could materially reduce revenue.
• Acquisition integration risk — The TJIM acquisition may not achieve expected diversification or revenue benefits, and retaining the remaining 20% could be subject to put/call terms.

Outlook

Management notes the macro environment remains turbulent with inflation not moderating, war in the Middle East pressuring commodity prices, and expected Fed rate increases. Despite this, U.S. growth appears poised to accelerate and risk markets have performed well. The company expects its asset management segment to expand with TJIM, while the investment portfolio remains smaller. No specific earnings guidance was provided.