BitFuFu Inc. Reports Unaudited First Quarter 2024 Financial Results
BitFuFu, a NASDAQ-listed digital asset mining service, reported its unaudited Q1 2024 financial results. Hosting capacity increased to 644 MW, up from 513 MW in Q1 2023, while total mining capacity hit 28.6 EH/s, a 52.1% rise. Cloud-mining users grew 63.5% to 321,184. However, BTC production from self-mining fell 11% to 1,103 BTCs. The cost to mine BTC surged to $39,182 each.
Revenue soared 149% to $144.4 million, driven by a 181% increase in cloud-mining revenue to $81.5 million and a 117% rise in self-mining revenue to $60.1 million. Net income leaped to $35.3 million, up from $2.7 million in Q1 2023. Adjusted EBITDA was $49.9 million, increasing from $9.4 million last year. The company ended the quarter with $163.7 million in cash and digital assets, up from $76 million at the end of 2023.
- Revenue increased by 149% YoY to $144.4 million.
- Cloud-mining revenue surged by 181% to $81.5 million.
- Self-mining revenue grew by 117% to $60.1 million.
- Net income rose to $35.3 million from $2.7 million in Q1 2023.
- Adjusted EBITDA climbed to $49.9 million, up from $9.4 million.
- Cloud-mining users increased by 63.5% to 321,184.
- Total mining capacity grew 52.1% to 28.6 EH/s.
- Cash and digital assets doubled to $163.7 million.
- BTC production from self-mining operations fell by 11% to 1,103 BTCs.
- Cost to mine BTC increased to $39,182 from $21,908.
- General and administrative expenses rose by 111.1% to $1.9 million.
- BTC production decreased due to higher blockchain difficulty.
Insights
BitFuFu Inc.’s latest financial results for Q1 2024 show an impressive year-over-year revenue growth of
In the short term, the notable revenue growth and substantial increase in net income are positive indicators. However, investors should monitor the rising costs of BTC production closely. In the long term, the company's asset-light strategy and plans to acquire or construct mining facilities could optimize their cost structure and provide sustainable growth.
From a technological perspective, BitFuFu’s expansion in hosting capacity and mining capabilities is noteworthy. The hosting capacity has increased to 644 MW across 29 sites on three continents, compared to 513 MW across 22 sites on one continent a year ago. This diversification reduces regional risks and enhances reliability. Additionally, the total mining capacity under management increased by
In the short term, the technological advancements and increased mining capacity are positive, but the decrease in self-mining BTC production due to blockchain difficulty is a challenge that requires ongoing innovation and efficiency improvements. Long-term success will depend on the company's ability to manage these difficulties while expanding their infrastructure effectively.
The sharp increase in BitFuFu’s registered cloud-mining users by
For retail investors, the strong user growth and innovative revenue strategies are promising for continued revenue stability and growth. However, monitoring the impact of rising administrative costs and how the company manages these expenses post-listing will be important for long-term profitability.
SINGAPORE, May 20, 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 unaudited financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Operational Highlights
- Hosting capacity of 644 MW diversified across 29 sites on three continents, compared with 513 MW across 22 sites on one continent during the same period of 2023
- Total mining capacity under management increased
52.1% to a record 28.6 EH/s, compared to 18.8 EH/S during the same period of 2023 - Cloud-mining registered users increased
63.5% to 321,184 as of March 31, 2024, compared to 196,468 as of March 31, 2023 - Bitcoin (“BTC”) production from self-mining operations decreased
11.0% to 1,103 BTCs from 1,239 BTCs in the same period of 2023 - BTC production by customers from cloud-mining solutions increased
53.0% to 2,096 BTCs, compared with 1,370 BTCs in the same period of 2023 - Cost to mine BTC from self-mining operations averaged US
$39,182 per BTC versus US$21,908 per BTC in 2023
| Metric | As of March 31, | |
| 2024 | 2023 | |
| Hosting capacity (MW) | 644 | 513 |
| Total mining capacity under management (EH/s) (1) | 28.6 | 18.8 |
| Cloud-mining registered Users | 321,184 | 196,468 |
| Three Months Ended 31 March, | ||
| 2024 | 2023 | |
| BTC Produced | ||
| From BitFuFu self-mining operations | 1,103 | 1,239 |
| By customers from cloud-mining solutions(2) | 2,096 | 1,370 |
| Average BTC produced per day by customers and BitFuFu | 35.5 | 29.3 |
| (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 period by customers using mining capacity purchased from cloud-mining solutions. |
First Quarter 2024 Financial Highlights
- Total revenue was US
$144.4 million , representing an increase of149.0% from US$58.0 million in the same period of 2023 - Revenue from cloud-mining solutions was US
$81.5 million , an increase of181.0% from US$29.0 million in the same period of 2023 - Revenue from Bitcoin self-mining operations was US
$60.1 million , an increase of117.0% from US$27.7 million in the same period of 2023 - Net income was
$35.3 million , compared to US$2.7 million in the same period of 2023 - Adjusted EBITDA (non-GAAP) was US
$49.9 million , an increase of430.9% from US$9.4 million in the same period of 2023 - Combined balance of cash, cash equivalents, and digital assets1 were US
$163.7 million as of March 31, 2024, compared with US$76.0 million as of December 31, 2023.
Leo Lu, Chief Executive Officer and Chairman of the Board of Directors, said, “We started out the year incredibly strongly with total revenue growing
First Quarter 2024 Financial Results
Revenue
Total revenue in the first quarter of 2024 was US
Revenue from cloud-mining solutions in the first quarter of 2024 was US
Revenue from Bitcoin self-mining operations in the first quarter of 2024 was US
Revenue from hosting services and others in the first quarter of 2024 was US
Revenue from sales of mining equipment in the first quarter of 2024 was US
In the first quarter of 2024, cloud-mining solutions accounted for
Cost of Revenue
Cost of revenue in the first quarter of 2024 was US
Operating Expenses
Sales and marketing expenses in the first quarter of 2024 were US
General and administrative expenses in the first quarter of 2024 were US
Research and development expenses in the first quarter of 2024 were US
There were no impairment losses on digital assets during the quarter, compared to US
Starting from January 1, 2024, the Company implemented the early adoption of FASB fair value accounting rules, ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets. The Company recognized a fair value gain on BTC of US
Gain on sales of digital assets in the first quarter of 2024 was US
Net Income
Net income in the first quarter of 2024 was US
Earnings per Share
Earnings per basic and diluted ordinary share were US
Adjusted EBITDA
Adjusted EBITDA in the first quarter of 2024 was US
Liquidity and Capital Resources
As of March 31, 2024, the Company had cash, 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 Monday, May 20, 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/BI8900c6165a8f47c6be0836f1394524c5
Additionally, a live and archived webcast of the conference call will also be available on the Company’s investor relations website at https://ir.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://ir.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/(subtract) 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 first quarter of 2024 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
Charley Brady
Vice President, Investor Relations
ir@bitfufu.com
Christensen Advisory
bff@christensencomms.com
| Appendix I: Financial statements | |||||
| Three months ended March 31, | |||||
| 2024 US$ ‘000 | 2023 US$ ‘000 | ||||
| Total revenues | 144,411 | 57,969 | |||
| Cost of revenues | |||||
| Cost of revenues incurred to a related party | (45,298 | ) | (40,099 | ) | |
| Cost of revenues incurred to third parties | (71,348 | ) | (9,445 | ) | |
| Cost of revenues – depreciation and amortization | (6,097 | ) | (6,030 | ) | |
| Total cost of revenues | (122,743 | ) | (55,574 | ) | |
| Gross profit | 21,668 | 2,395 | |||
| Operating expenses | |||||
| Sales and marketing expenses | (383 | ) | (423 | ) | |
| General and administrative expenses | (1,934 | ) | (891 | ) | |
| Research and development expenses | (391 | ) | (483 | ) | |
| Impairment loss on digital assets | - | (1,719 | ) | ||
| Unrealized fair value gain of Bitcoins | 11,758 | - | |||
| Realized gain on sales of digital assets | 13,089 | 4,525 | |||
| Total operating expenses, net | 22,139 | 1,009 | |||
| Operating income | 43,807 | 3,404 | |||
| Interest expense | (1,528 | ) | (807 | ) | |
| Interest income | 343 | 410 | |||
| Other income/(expenses), net | - | 4 | |||
| Income before income taxes | 42,622 | 3,011 | |||
| Income tax (expense)/benefit | (7,314 | ) | (328 | ) | |
| Net income and total comprehensive income | 35,308 | 2,683 | |||
| Earnings per share: | |||||
| Ordinary shares – basic and diluted (US$) | 0.23 | 0.02 | |||
| Weighted average shares outstanding used in calculating basic and diluted earnings per share: | |||||
| Ordinary shares – basic and diluted | 154,395,278 | 150,000,000 | |||
* The amount was less than
| BITFUFU INC. | |||
| CONSOLIDATED BALANCE SHEETS | |||
| March 31, 2024 US$ ‘000 | December 31, 2023 US$ ‘000 | ||
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | 87,162 | 32,005 | |
| Digital assets | 76,508 | 43,979 | |
| Accounts receivable, net | 3,028 | 3,838 | |
| Prepayments | 52,314 | 39,566 | |
| Amount due from related parties | 14 | 38 | |
| Inventory | 303 | - | |
| Other current assets | 4,559 | 1,843 | |
| Total current assets | 223,888 | 121,269 | |
| Non-current assets: | |||
| Equipment, net | 75,754 | 81,857 | |
| Deposits | 2,683 | 2,683 | |
| Deferred tax assets, net | 4,404 | 4,224 | |
| Total non-current assets | 82,841 | 88,764 | |
| Total assets | 306,729 | 210,033 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current liabilities: | |||
| Accounts payables | 1,967 | 806 | |
| Contract liabilities | 42,438 | 47,724 | |
| Taxes payable | 3,218 | 2,233 | |
| Accrued expenses and other payables | 5,338 | 5,368 | |
| Amount due to a related party | 23,497 | 30,229 | |
| Total current liabilities | 76,458 | 86,360 | |
| Non-current liabilities: | |||
| Long-term payables | 102,435 | 102,435 | |
| Deferred tax liabilities, net | 11,397 | 3,904 | |
| Total non-current liabilities | 113,832 | 106,339 | |
| Total liabilities | 190,290 | 192,699 | |
| Total shareholders’ equity | 116,439 | 17,334 | |
| Total liabilities and stockholders’ equity | 306,729 | 210,033 | |
| Appendix II: Unaudited Reconciliation of GAAP and non-GAAP Results | ||
| Three months ended March 31, | ||
| 2024 | 2023 | |
| US$ ‘000 | US$ ‘000 | |
| Net profit | 35,308 | 2,683 |
| Add: Interest expenses, net | 1,185 | 397 |
| Add: Income tax expense/(benefit) | 7,314 | 327 |
| Add: Depreciation | 6,097 | 6,041 |
| Adjusted EBITDA | 49,904 | 9,448 |
__________________
1 The Company has early adopted the new FASB Accounting Standards Update (ASU) No. 2023-08, Accounting for and Disclosure of Crypto Assets on January 1, 2024. Under the new standard, the Company's Bitcoin ("BTC") holdings are measured at fair value, with changes in fair value recognized in the Company's income statement.
FAQ
What was BitFuFu's total revenue for Q1 2024?
How much did BitFuFu's cloud-mining revenue grow in Q1 2024?
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What was BitFuFu's adjusted EBITDA for Q1 2024?
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