Bitfufu Reports 70% Revenue Growth in Q2 2024, Cloud Mining Clients Pay $77 Million

Bitfufu Inc., a Nasdaq-listed cloud mining services company, announced a 69.7% revenue jump for the second quarter of 2024, bringing in $129.4 million. The Singapore-based firm, established in 2020 by CEO Leo Lu, credited this growth largely to a substantial increase in cloud mining revenue, which made up more than half of the quarter’s earnings.

According to Bitfufu’s (Nasdaq: FUFU) unaudited Q2 earnings, cloud mining services brought in $77 million, marking a 66.8% rise compared to the same period in 2023. This boost was fueled by repeat purchases from loyal customers and the addition of new users. Impressively, the company reported that its platform had over 395,000 registered users by the end of June 2024, an 87% increase from the previous year.

The cloud mining segment alone accounted for nearly 60% of Bitfufu’s total revenue for the quarter, highlighting its critical role in the company’s financial health. However, despite the overall revenue boost, Bitfufu’s net income dropped to $1.3 million from $5.1 million in Q2 2023. The company attributed this decline partly to a $16.4 million non-cash unrealized fair value loss on its bitcoin (BTC) holdings.

Bitfufu also pointed out that the cost to mine BTC saw a sharp increase, averaging $51,887 per BTC, up from $19,344 in the same quarter last year. These rising costs, coupled with higher operating expenses, led to a drop in adjusted EBITDA to $8.3 million, a 39.6% decrease year-over-year. As of mid-day on Aug. 20, FUFU shares had fallen 5.9% and were down 9% over the past five days.

by Jamie Redman | Original Link