BitFuFu reports strong Q2 revenue despite Bitcoin production decline
BitFuFu Inc., a leading digital asset mining and cloud-mining service provider, reported robust financial results for the second quarter of 2024, highlighting significant revenue growth despite challenges in Bitcoin (CRYPTO:BTC) production.
For the quarter ending June 30, 2024, BitFuFu achieved a total revenue of $129.4 million, marking a 69.7% increase from the $76.3 million reported in the same period of 2023.
The surge was primarily driven by a 66.8% growth in revenue from cloud-mining solutions, which reached $77.0 million.
Additionally, revenue from Bitcoin self-mining operations rose by 81.0% to $51.1 million, despite a 23.1% decrease in Bitcoin production due to increased mining difficulty and the April 2024 halving event.
Operationally, BitFuFu expanded its hosting capacity to 522 MW across 25 sites worldwide, up from 374 MW across 17 sites in 2023.
The company also saw its total mining capacity increase by 62.5% to 24.7 EH/s, with a notable rise in cloud-mining registered users, reaching 395,056 by the end of June 2024, an 86.8% increase year-over-year.
However, the quarter also presented challenges.
The cost to mine Bitcoin from self-mining operations averaged $51,887 per BTC, significantly higher than the $19,344 per BTC in the same period last year.
Despite these higher costs, BitFuFu maintained a healthy financial position, with cash, cash equivalents, and digital assets totaling $155.0 million as of June 30, 2024.
Net income for the quarter was $1.3 million, down from $5.1 million in Q2 2023, while adjusted EBITDA stood at $8.3 million, reflecting a 39.6% decline due to a non-cash fair value loss on Bitcoin holdings.
Despite these challenges, BitFuFu's management expressed confidence in the company’s growth strategy, bolstered by a strong balance sheet and continued expansion in the cloud-mining sector.
BitFuFu's leadership emphasised the company’s ability to hedge against Bitcoin price volatility through its cloud-mining business, which accounted for nearly 60% of total revenue in the quarter.
The company remains focused on leveraging its global mining network and strategic partnerships to drive future growth.
As of now, the Bitcoin price is $59,064.78.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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