Bimini Capital Management, Inc.

Bimini’s direct customers are primarily Orchid Island Capital and, to a lesser extent, any future externally managed entities it may advise. Orchid pays Bimini Advisors for portfolio management, which makes Orchid’s capital base and issuance activity important drivers of fee revenue. The company also effectively serves capital markets investors through its own investment portfolio, where returns depend on the performance of Agency MBS and the cost of repo financing. Because the advisory business is tied to Orchid’s asset growth, Bimini’s customer base is narrow and highly concentrated. That concentration makes the company more dependent on the health of Orchid and on the mortgage REIT funding environment than on a broad client roster.

Bimini’s strategy is to earn returns from a leveraged Agency MBS portfolio while also monetizing its advisory platform through Orchid’s capital growth. Management emphasizes traditional pass-through and structured Agency MBS, which are supported by GSE guarantees and therefore align with the company’s specialty finance expertise. The company has also indicated that if the TJIM acquisition closes, its capital deployment and segment mix could change materially, with a larger share of resources directed toward a controlling stake and potentially a more conservatively managed future MBS portfolio. In the near term, the key strategic objective is to preserve earning power from Orchid’s growth while maintaining access to financing and managing leverage prudently.