Cloud mining service and provider, BitFuFu Inc., has reported a remarkable 149% increase in total revenue for the first quarter of 2024. The company’s cloud mining solutions and self-mining operations have propelled its financial success.
BitFuFu Inc. achieved outstanding results, with total revenue surging 149% year-over-year to $144.4 million. The company’s net income grew over 12-fold to $35.3 million, while adjusted EBITDA increased by 431% to $49.9 million.
The exceptional performance was driven by BitFuFu’s cloud mining segment, which saw revenue nearly triple to $81.5 million. The company’s user base also grew by 63.5% to over 321,000 registered miners globally. Customers were attracted to the platform’s unique feature of purchasing hashrate at fixed prices, providing protection during market fluctuations.
CEO Leo Lu attributes these impressive results to BitFuFu’s “asset-light strategy,” which allows for optimization of mining rigs and hashrate deployment, reducing revenue volatility and strengthening cash flow.
In addition to its cloud mining business, BitFuFu’s self-mining operations contributed to the company’s success. Revenue in this segment increased by 117% to $60.1 million. Although bitcoin production declined by 11% due to network difficulty, this was overshadowed by a 70% increase in hashrate and a 134% surge in average BTC prices.
These two engines combined to result in a cash hoard of $163.7 million on BitFuFu’s balance sheet by the end of the quarter, more than double the previous period.
Looking ahead, BitFuFu plans to further optimize its cost structure and expand its bottom line by acquiring existing facilities or constructing new ones. The company’s unique hybrid model, which combines cloud offerings and self-mining, has proven successful with its rapidly expanding global presence.
BitFuFu successfully raised funds through a NASDAQ listing in March and aims to debut in the third quarter with an anticipated enterprise value of nearly $1.5 billion. The company’s strong financials, including $134 million in revenue for the first half of 2023, were revealed in its F-4 filing with the SEC.
BitFuFu’s partnership with Bitmain, with the latter holding a 5% equity stake in the company, has played a significant role in its success. Bitmain is also a major supplier, with $90 million of BitFuFu’s revenue allocated to miner leasing and hosting fees.
As of March 31, 2024, BitFuFu had cash, cash equivalents, and digital assets totaling $163.7 million, reflecting an increase from $76.0 million on December 31, 2023. This growth can be attributed to funds raised from the business combination and NASDAQ listing, as well as a fair value gain on BTC due to rising prices.