BitFuFu Inc. Reports Full Year 2023 Financial Results
- BitFuFu Inc. showed impressive growth in operational metrics for full year 2023.
- Revenue for 2023 was US$284.1 million, marking a 43.3% increase from 2022.
- Cloud-mining solutions revenue saw a substantial 79.1% increase in 2023.
- Net income surged by 337.5% to US$10.5 million in 2023 compared to 2022.
- The Company raised US$75.1 million in connection with its NASDAQ listing.
- BitFuFu plans to leverage its cloud-mining business growth and expand operations.
- Partnerships with other industry players are on the horizon for BitFuFu.
- None.
Insights
The expansion of BitFuFu's hosting capacity and total mining capacity is a strong indicator of its strategic growth and investment in infrastructure. This growth is significant as it suggests that BitFuFu is scaling operations to meet increasing demand for cloud-mining solutions, which is evidenced by the 61.5% increase in registered users. The diversification of sites across three continents could also be a strategic move to mitigate geopolitical risks and tap into cheaper energy markets, potentially lowering operational costs in the long term.
However, the increased cost to mine BTC from self-mining operations raises questions about the sustainability of profit margins, especially in volatile cryptocurrency markets. The 31.6% increase in production cost per BTC could impact BitFuFu's competitiveness if the price of BTC does not rise proportionally. Investors should monitor the relationship between production costs, BTC price trends and the company's operational efficiency closely.
BitFuFu's financial results show a substantial increase in net income and a moderate rise in adjusted EBITDA, which is a positive signal to investors about the company's profitability and operational efficiency. The 337.5% increase in net income is particularly impressive, although it's important to consider the base effect, given the net income in the previous year was relatively low. The 43.3% increase in total revenue, with significant contributions from cloud-mining solutions and self-mining operations, highlights the company's ability to capitalize on these segments effectively.
Despite the positive revenue and net income figures, the cost of revenue increased by 67.5%, which could be a concern if costs continue to rise at a faster rate than revenue. The financial health of the company appears stable with an 11.1% increase in combined cash and digital assets, which is important for sustaining growth and weathering potential downturns in the cryptocurrency market. The recent capital raise from NASDAQ listing provides additional liquidity that could be used for further expansion or to cushion against market volatility.
The increase in BTC production from both self-mining operations and cloud-mining solutions is a testament to BitFuFu's operational capacity in a competitive market. The 98.4% increase in BTC production by customers from cloud-mining solutions is particularly noteworthy, as it suggests a robust demand for these services and BitFuFu's effectiveness in capturing market share. Additionally, the company's strategic shift away from equipment sales and leasing to focus on cloud-mining could be interpreted as a move to concentrate on core strengths and higher-margin services.
However, the cryptocurrency market is known for its volatility and BitFuFu's reliance on BTC prices can be a double-edged sword. While the increase in BTC price has led to gains on sales of digital assets, the impairment loss on digital assets indicates the risks associated with holding cryptocurrencies. The decision not to implement FASB fair value accounting rules could be a conservative approach to valuation, but it also means that gains or losses from price fluctuations are recognized immediately, which could introduce earnings volatility.
SINGAPORE, April 11, 2024 (GLOBE NEWSWIRE) -- BitFuFu Inc., (“BitFuFu” or “the Company”) (NASDAQ: FUFU), a fast-growing digital asset mining service and world-leading cloud-mining service provider, today announced its financial results for the full year ended December 31, 2023.
Full Year 2023 Operational Highlights
- Hosting capacity of 515 MW diversified across 24 sites on three continents as of December 31, 2023, compared with 336 MW across 19 sites on one continent as of December 31, 2022
- Total mining capacity increased
106.3% to a record 22.9 EH/s as of December 31, 2023, compared to 11.1 EH/S as of December 31, 2022 - Cloud-mining registered users increased
61.5% to 304,270 as of December 31, 2023 compared to 188,460 as of December 31, 2022 - Bitcoin (“BTC”) production from self-mining operations increased
26.6% to 3,577 BTCs in 2023, from 2,825 BTCs in 2022 - BTC production by customers from cloud-mining solutions increased
98.4% to 6,756 BTCs in 2023, from 3,405 BTCs in 2022 - Cost to mine BTC from self-mining operations in 2023 averaged US
$28,200 per BTC versus US$21,500 per BTC in 2022
Operational Highlights
| Metric | As of December 31, | |
| 2023 | 2022 | |
| Hosting capacity (MW) | 515 | 336 |
| Total mining capacity (EH/s) (1) | 22.9 | 11.1 |
| Cloud-mining registered Users | 304,270 | 188,460 |
| For the Year ended December 31 | ||
| 2023 | 2022 | |
| BTC Produced | ||
| From BitFuFu self-mining operations | 3,577 | 2,825 |
| By customers from cloud-mining solutions(2) | 6,756 | 3,405 |
| Average BTC produced per day by customers and BitFuFu | 28.3 | 17.1 |
| (1) | Defined as the hash rate that could theoretically be generated if all miners that have been energized are currently in operation including miners that may be temporarily offline. Hash rates are estimates based on the manufacturers' specifications. |
| (2) | Defined as the amount of BTC that was produced during the year by customers using mining capacity purchased from cloud-mining solutions. |
Full Year 2023 Financial Highlights
- Total revenue was US
$284.1 million in 2023, representing an increase of43.3% from US$198.2 million in 2022 - Revenue from cloud-mining solutions was US
$178.0 million in 2023, representing an increase of79.1% increase from US$99.4 million in 2022 - Revenue from Bitcoin self-mining operations was US
$100.2 million in 2023, representing an increase of66.2% from US$60.3 million in 2022 - Net income was US
$10.5 million in 2023, representing an increase of337.5% compared with US$2.4 million in 2022 - Adjusted EBITDA was US
$41.7 million in 2023, representing an increase of5.3% compared with US$39.6 million in 2022 - Combined balance of cash and cash equivalents and digital assets1 were US
$76.0 million as of December 31, 2023, representing an increase of11.1% compared with US$68.4 million as of December 31, 2022 - BitFuFu raised US
$75.1 million in connection with its business combination and listing on NASDAQ in March 2024.
Leo Lu, Chief Executive Officer and Chairman of the Board of Directors, said, “In 2023, BitFuFu witnessed significant growth, reflecting the increasing recognition of the value we offer customers through our cloud-mining solutions. Our ability to flexibly allocate mining capacity between self-mining and cloud-mining services, and between leased and owned miners, based on our assessment of market dynamics and strategic forecasts, drove the rapid growth in our cloud-mining business in 2023.”
“Building on the momentum in our cloud-mining business, we plan to continue leveraging our competitive advantage in this segment, expand our operations and cultivate new partnerships with other industry players.”
Full Year 2023 Financial Results
Revenue
Total revenue in 2023 was US
Revenue from cloud-mining solutions in 2023 was US
Revenue from Bitcoin self-mining operations in 2023 was US
Revenue from hosting services and others in 2023 was US
The Company did not generate revenue from its sourcing services for mining equipment, leasing services or sales of mining equipment in 2023, as part of the Company’s strategic shift towards the development of its cloud-mining business. The Company generated US
Cloud-mining solutions accounted for
Cost of Revenue
Cost of revenue in 2023 was US
Operating Expenses
Sales and marketing expenses in 2023 were US
General and administrative expenses in 2023 were US
Research and development expenses in 2023 were US
There were no impairment losses on mining equipment in 2023, compared to US
Impairment loss on digital assets in 2023 was US
Gains on sales of digital assets in 2023 were US
Net Income
Net income in 2023 was US
Adjusted EBITDA
Adjusted EBITDA in 2023 was US
Liquidity and Capital Resources
As of December 31, 2023, the Company had cash and cash equivalents and digital assets of US
Conference Call
The Company’s management team will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Wednesday, April 11, 2024 (8:00 P.M. Singapore Time on the same day).
All participants must register in advance of the conference call using the link provided below. Upon registration, each participant will receive a confirmation email containing dial-in numbers and a unique access PIN, which will be used to join the conference call.
Registration Link: https://register.vevent.com/register/BIfe9b3031569c43b3946549eba3c175d1
Additionally, a live and archived webcast of the conference call will also be available on the Company’s investor relations website at https://investors.bitfufu.com/.
About BitFuFu Inc.
BitFuFu is a fast-growing digital asset mining service and world-leading cloud-mining service provider. BitFuFu received early investment from Bitmain, a world-leading digital asset mining hardware manufacturer, and remains Bitmain’s sole strategic partner in the cloud mining space.
BitFuFu is dedicated to fostering a secure, compliant, and transparent blockchain infrastructure, providing a variety of stable and intelligent digital asset mining solutions to a global customer base. Leveraging its expanding global mining facility network and strategic partnership with Bitmain, BitFuFu enables institutional customers and digital asset enthusiasts to mine digital assets efficiently.
For more information, please visit https://investors.bitfufu.com/.
Non-GAAP Financial Measure
BitFuFu uses and considers Adjusted EBITDA, a non-GAAP financial measure, as a supplemental metrics in reviewing and evaluating its performance. BitFuFu defines Adjusted EBITDA as (1) GAAP net profit/loss, plus (2) adjustments to add back interest expense/(income), income tax expense/(benefit), depreciation and amortization; and (3) adjustments for non-recurring items, if any. BitFuFu believes that this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating the consolidated financial results in the same manner as its management and in comparing financial results across accounting periods. However, Non-GAAP financial measure is not defined under GAAP and are not presented in accordance with GAAP. Non-GAAP financial measure has limitations as analytical tools, which possibly do not reflect all items of expense that affect the Company’s operations. BitFuFu’s calculation of adjusted EBITDA may be different from the calculation methods of other companies, and therefore, the comparability of such measure may be limited. In addition, this non-GAAP financial measure adjusts for the impact of items that BitFuFu does not consider indicative of the operational performance of its business and should not be considered in isolation or construed as an alternative to net profit/loss or any other measure of performance or as an indicator of its future performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
For more information on the non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and non-GAAP Results” set forth at the end of this release. BitFuFu encourages you to review its financial information in its entirety and not rely on a single financial measure.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of BitFuFu's management and are not predictions of actual performance. These statements involve risks, uncertainties and other factors that may cause BitFuFu's actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. The announced results of the full year of 2023 are preliminary and subject to adjustments. All information provided in this press release is as of the date of this press release and the Company does not undertake any duty to update such information, except as required under applicable law.
For investor and media inquiries, please contact:
Investor Relations
BitFuFu Investor Relations
ir@bitfufu.com
Christensen Advisory
bff@christensencomms.com
| Appendix I: Financial statements | |||||||||
| For the years ended December 31, | |||||||||
| 2023 US$ ‘000 | 2022 US$ ‘000 | ||||||||
| Total revenues | 284,106 | 198,199 | |||||||
| Cost of revenues | |||||||||
| Cost of revenues incurred to a related party | (166,541 | ) | (83,878 | ) | |||||
| Cost of revenues incurred to third parties | (80,397 | ) | (59,955 | ) | |||||
| Cost of revenues – depreciation and amortization | (24,455 | ) | (18,134 | ) | |||||
| Total cost of revenues | (271,393 | ) | (161,967 | ) | |||||
| Gross profit | 12,713 | 36,232 | |||||||
| Operating expenses | |||||||||
| Sales and marketing expenses | (1,863 | ) | (1,952 | ) | |||||
| General and administrative expenses | (3,682 | ) | (2,735 | ) | |||||
| Research and development expenses | (1,741 | ) | (1,564 | ) | |||||
| Credit loss provision for receivables | (100 | ) | (608 | ) | |||||
| Impairment loss on assets held by FTX | - | | (9,827 | ) | |||||
| Impairment loss on digital assets | (6,987 | ) | (12,949 | ) | |||||
| Impairment loss on mining equipment | - | (11,850 | ) | ||||||
| Loss on disposal of subsidiary | - | - | |||||||
| Realized gain on sales of digital assets | 18,231 | 4,948 | |||||||
| Realized fair value gain on digital asset borrowings | - | 4,206 | |||||||
| Total operating expenses, net | 3,858 | (32,331 | ) | ||||||
| Operating income | 16,571 | 3,901 | |||||||
| Interest expense | (5,536 | ) | (2,517 | ) | |||||
| Interest income | 1,055 | 343 | |||||||
| Other income/(expenses), net | 587 | 50 | |||||||
| Income before income taxes | 12,677 | 1,777 | |||||||
| Income tax (expense)/benefit | (2,183 | ) | 666 | ||||||
| Net income and total comprehensive income | 10,494 | 2,443 | |||||||
| Earnings per share: | |||||||||
| Ordinary shares – basic and diluted (US$) | 0.07 | 0.02 | |||||||
| Weighted average shares outstanding used in calculating basic and diluted earnings per share: | |||||||||
| Ordinary shares – basic and diluted | 150,000,000 | 149,383,562 | |||||||
| BITFUFU INC. | |||
| CONSOLIDATED BALANCE SHEETS | |||
| As of December 31, | |||
| 2023 US$ ‘000 | 2022 US$ ‘000 | ||
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | 32,005 | 60,431 | |
| Digital assets | 43,979 | 8,010 | |
| Accounts receivable, net | 3,838 | 6,270 | |
| Amount due from related parties | 38 | 37 | |
| Prepayments | 39,566 | 12,524 | |
| Other current assets | 1,843 | 301 | |
| Total current assets | 121,269 | 87,573 | |
| Non-current assets: | |||
| Equipment, net | 81,857 | 106,291 | |
| Deposits | 2,683 | - | |
| Deferred tax assets, net | 4,224 | 4,471 | |
| Total non-current assets | 88,764 | 110,762 | |
| Total assets | 210,033 | 198,335 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current liabilities: | |||
| Accounts payables | 806 | 38 | |
| Contract liabilities | 47,724 | 6,443 | |
| Taxes payable | 2,233 | 5,126 | |
| Accrued expenses and other payables | 5,368 | 3,292 | |
| Amount due to a related party | 30,229 | 67,162 | |
| Total current liabilities | 86,360 | 82,061 | |
| Non-current liabilities: | |||
| Long-term payables | 102,435 | 109,435 | |
| Deferred tax liabilities, net | 3,904 | - | |
| Total non-current liabilities | 106,339 | 109,435 | |
| Total liabilities | 192,699 | 191,496 | |
| Total shareholders’ equity | 17,334 | 6,839 | |
| Total liabilities and stockholders’ equity | 210,033 | 198,335 | |
| Appendix II: Unaudited Reconciliation of GAAP and non-GAAP Results | |||
| For the years ended December 31, | |||
| 2023 | 2022 | ||
| US$ ‘000 | US$ ‘000 | ||
| Net profit | 10,494 | 2,443 | |
| Add: Interest expenses, net | 4,481 | 2,174 | |
| Add: Income tax expense/(benefit) | 2,183 | (666 | ) |
| Add: Depreciation | 24,501 | 18,156 | |
| Add: Impairment loss on mining equipment | - | 11,850 | |
| Add: Impairment loss on assets held by FTX | - | 9,827 | |
| Minus: Realized fair value gain on digital asset borrowings | - | (4,206 | ) |
| Adjusted EBITDA | 41,659 | 39,578 | |
1 BTC was measured at carrying value. The Company has not implemented the early adoption of FASB fair value accounting rules, ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets, in its financials for full year 2023. Starting from January 1, 2024, the Company will adopt the new FASB fair value accounting rules.
2 Blockchain difficulty is a technical term in BTC mining, which affects the unit mining output per terahash. The higher of blockchain difficulty, the less BTC will be produced by each hash rate unit.
FAQ
What is BitFuFu's ticker symbol?
What was BitFuFu's total revenue for 2023?
How much did BitFuFu's net income increase by in 2023?
What percentage increase did cloud-mining solutions revenue see in 2023?
How much did BitFuFu raise in connection with its NASDAQ listing?
What are BitFuFu's plans for the future based on the PR?
