BitFuFu

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Cloud Computing Services: Providing a convenient way for global users to participate in Bitcoin mining. Users do not need to purchase mining machines, find locations, or manage operations. By purchasing BitFuFu's cloud computing services, they can access the computing power resources deployed in mining farms around the world to participate in mining. The company has attracted a large number of investors interested in cryptocurrency mining but lacking professional technology and resources through this business. As of December 31, 2024, the total number of registered cloud computing users worldwide is nearly 592,000, a year-on-year increase of 94.5%. Self-operated mining: The company invests its own funds to purchase mining machines and deploys them in mining farms around the world for Bitcoin mining. In 2024, benefiting from the overall expansion of mining power and the increase in the average price of Bitcoin, the revenue from self-operated mining business reached 158 million USD, a year-on-year increase of 57.2%. To address the challenges brought by the Bitcoin halving in April 2024, BitFuFu will strategically relocate its self-operated mining business to regions with lower global electricity costs to enhance operational efficiency and profitability. Mining Machine Hosting: Providing customers with mining machine hosting services, customers entrust their own mining machines to BitFuFu. The company utilizes its global mining resources to offer customers services such as site, power supply, and mining machine operation and maintenance, charging corresponding hosting fees. Mining Machine Sales: Revenue is generated through the sale of mining machines, with an expected income of $30.5 million from mining machine sales in 2024. At the same time, the company announced in January 2025 that it has signed a new two-year framework procurement agreement with Bitmain, allowing for the procurement of up to 80,000 S21 series or the latest mining machines under favorable conditions. This not only secures its own mining machine needs but may also further expand the mining machine sales business.

Cloud computing business profitability: Revenue is primarily generated by selling cloud computing packages to users. With an increase in repeat purchases from both new and existing customers, as well as an increase in average selling prices, the cloud computing business is expected to achieve revenue of $271 million in 2024, a year-on-year growth of 52.2%. Among this, revenue contribution from existing users reaches $208 million, accounting for 76.9% of the total revenue of the cloud computing business, indicating a high level of user stickiness. Self-operated mining profits: Profits are made by mining Bitcoin and selling it on the market. The price fluctuations of Bitcoin significantly impact profitability. In 2024, the average price of Bitcoin is expected to rise, driving substantial revenue growth for self-operated mining businesses. At the same time, the company optimizes its mining layout by relocating to areas with low electricity costs, controlling expenses to enhance profit margins. Mining machine hosting profit: The hosting fees are charged based on the number of hosted mining machines, the duration of hosting, and the level of services provided, becoming one of the stable sources of profit. Mining machine sales profit: By purchasing mining machines and reselling them to customers, profit is made by earning the price difference.

Cloud computing power business: It has lowered the threshold for ordinary investors to participate in Bitcoin mining, attracting a large number of users, expanding the company's user base and market share, and enhancing brand influence. Continuous revenue growth provides the company with stable cash flow for business expansion, technological research and development, and global layout. Self-operated mining business: It is an important way for the company to directly acquire Bitcoin assets and achieve profitability. During the Bitcoin price increase cycle, it can significantly enhance the company's profits and strengthen its voice and competitiveness in the cryptocurrency market. Mining machine hosting business: Utilizing the company's existing mining site resources to provide value-added services for customers, increase revenue sources, and further strengthen cooperation with customers. Mining machine sales business: Enriched the company's profit channels, leveraging cooperation with suppliers such as Bitmain to ensure its own mining machine needs while expanding market sales and enhancing the overall profitability of the company.

BitFuFu's business mainly revolves around Bitcoin (BTC), having a multifaceted impact on BTC: Hash Power Contribution: The company continuously expands its mining hash power, enhancing the total hash power of the Bitcoin network and improving network security and stability. By the end of 2024, the mining hash power managed by BitFuFu will reach 23.5 EH/s, distributed across 34 mining sites on five continents. Market Supply: The company produces Bitcoin through self-operated mining and helps customers generate Bitcoin through cloud computing services, increasing the supply of Bitcoin in the market and affecting the supply-demand relationship of Bitcoin to some extent. In 2024, BitFuFu achieved an annual Bitcoin output of 7,484 coins, of which cloud computing services generated 4,947 coins for customers, and self-operated mining contributed 2,537 coins. Price Impact: If the price of Bitcoin rises, the company's profits will increase, which may attract more investors to enter the Bitcoin mining industry, further driving up the demand and price of Bitcoin; conversely, if the price falls, the company may optimize its cost structure, affecting its mining strategy, which in turn will impact the output and supply of Bitcoin in the market.