BitFuFu, a Singapore-based digital asset mining company listed on NASDAQ under the ticker FUFU, has announced its financial results for the third quarter of 2024, revealing a significant 47.5% year-over-year revenue increase to $90.3 million and an adjusted EBITDA of $5.8 million. This performance is particularly noteworthy given the recent Bitcoin halving event in late April, which reduced the Bitcoin block subsidy from 6.25 to 3.125 Bitcoin per block, presenting challenges to the mining industry's profitability.
The company's success is largely attributed to its innovative strategy of collaborating with mining partners to enhance revenue and operational efficiencies, rather than relying solely on in-house operations. This approach, along with a focused business model, has established BitFuFu as a growth leader in the sector. Cloud mining solutions were the primary revenue driver, contributing $68.9 million or 75% of the total quarterly revenue, with a notable 75.3% increase in cloud-mining registered users to 455,764 compared to the previous year.
To combat rising costs and expand its operations, BitFuFu has undertaken several strategic initiatives, including reallocating its mining fleet, securing cost-effective long-term purchase agreements, and utilizing new low-cost electricity sites. These efforts have expanded the company's hosting capacity to 556 megawatts across 17 sites on three continents, up from 339 MW across 16 sites on two continents the previous year. Additionally, BitFuFu has achieved a 13% reduction in average hosting costs to 6.8 cents per kilowatt hour in Q3, further decreasing to 6.5 cents in October.
Leo Lu, BitFuFu's chairman and CEO, highlighted the company's adaptability to market changes, emphasizing the advantages of its asset-light strategy, especially post-Bitcoin halving events. The company is also expanding its mining infrastructure, as evidenced by a definitive agreement to acquire a majority stake in an 80-megawatt mining site in Ethiopia, with electricity costs around 3.6 cents per kilowatt hour, aligning with its sustainable energy platform goals.
BitFuFu's total mining capacity under management saw an 88.5% year-over-year increase to 26.2 EH/s in Q3. The company continues to explore regions with favorable energy rates to further reduce costs and ensure operational stability. With a commitment to growth and shareholder value, BitFuFu's strategic initiatives and strong performance have garnered positive investor attention, including a 'Buy' rating and a $7 target price from H.C. Wainwright analyst Kevin Dede.
As the cryptocurrency mining industry evolves, BitFuFu's ability to adapt and maintain profitability positions it as a key player to watch. Its performance in revenue growth and net income underscores the potential of its business model in the volatile digital asset mining sector.
