BitFuFu Inc., a swiftly expanding digital asset mining service and cloud-mining provider, unveiled outstanding financial performance for Q1 2024. Their pioneering cloud mining solutions and self-mining endeavors are driving robust revenue and profit growth.
During the quarter, the company saw a remarkable 149% year-on-year surge in total revenue, reaching $144.4 million, fueled by the rapid expansion of its cloud mining solutions and self-mining activities.
BitFuFu Cloud-Mining Making the Most
Total revenue surged by an astounding 149% year-over-year to $144.4 million, surpassing expectations. Profit numbers were even more staggering, with net income skyrocketing over 12-fold to $35.3 million, and adjusted EBITDA soaring 431% to $49.9 million.
The exceptional performance was primarily driven by the company’s cloud mining operations. Revenue from this rapidly growing segment nearly tripled to $81.5 million, fueled by a 63.5% increase in BitFuFu’s user base to over 321,000 registered miners worldwide. Customers were drawn to the platform’s unique offering of purchasing hashrate at fixed prices, providing a hedge against market volatility in the crypto sphere.
CEO Leo Lu attributes BitFuFu’s massive synergies to its “asset-light strategy,” which allows for agile optimization of mining rigs and hashrate deployment. “Our cloud mining solutions enable us to mitigate revenue volatility… and significantly enhance cash flow by pre-selling hashrate at a fixed price,” he elaborated.
However, the cloud business was just one facet of BitFuFu’s multifaceted success story last quarter. Its self-mining operations also saw impressive growth, with revenue jumping 117% to $60.1 million. Despite a slight 11% decline in bitcoin production due to network difficulty, this was outweighed by a 70% increase in hashrate and a 134% surge in average BTC prices.
Together, these dual engines fueled a cash reserve of $163.7 million on BitFuFu’s balance sheet by the end of the quarter—more than double the previous period.
BitFuFu Listing on NASDAQ
Looking forward, BitFuFu is intensifying its focus on its distinctive hybrid model encompassing both cloud offerings and self-mining. Lu emphasized plans to acquire existing facilities or build new ones to “optimize our cost structure and capital allocation even further and expand our bottom line.”
With a rapidly expanding global presence spanning 29 mining sites across three continents, BitFuFu has quickly evolved beyond its origins and has proven to be a strong partner for Bitmain’s cloud services.
The cryptocurrency mining firm has also bolstered its financial reserves by raising funds through a NASDAQ listing in March. Having filed an F-4 form with the SEC on December 31 to register its securities for the merger as a foreign private entity, the SEC has declared it effective.
Following its SPAC merger acquisition, BitFuFu debuted on the Nasdaq exchange under the ticker symbol “FUFU,” aiming for a third-quarter introduction with an expected enterprise value of nearly $1.5 billion.
The F-4 filing unveiled robust financials, with BitFuFu reporting $134 million in revenue for the first half of 2023 and an operating hashrate of 15.2 EH/s, albeit with nearly 80% of the hashing power originating from miners leased from Bitmain.
Bitmain holds a 5% equity stake in BitFuFu and serves as a significant supplier, with $90 million of BitFuFu’s revenue designated to Bitmain for miner leasing and hosting fees.
As of March 31, 2024, the company held cash, cash equivalents, and digital assets totaling US$163.7 million, up from US$76.0 million on December 31, 2023. This increase is primarily attributed to funds raised from its business combination and NASDAQ listing in March 2024, along with a fair value gain on BTC due to rising BTC prices.