BitFuFu completes SPAC merger, starts trading

The Latest: Digital asset mining services provider BitFuFu Inc. (FUFU.US) said on Thursday its revenue rose 43.3% last year to $284.1 million, while its net income more than quadrupled to $10.5 million from $2.4 million in 2022.

Looking Up: Revenue from the company’s cloud-mining solutions business rose 79% to $178 million, now accounting for 63% of its total, as it made a strategic shift towards developing that business. Its cloud-mining users also grew 61.5% to over 300,000 at the end of last year.

Take Note: BitFuFu didn’t generate any revenue from services related to sourcing, leasing and sales of mining equipment last year, compared to $30.5 million in revenue from those three sources in 2022. The shift comes as the company rejigs and optimizes its business portfolio to better align with current crypto market conditions.

Digging Deeper: Established in Singapore in 2020, BitFuFu provides digital asset mining services, and listed on the Nasdaq in March through a merger with a special purpose acquisition company (SPAC). As the price of Bitcoin nearly tripled since last October, BitFuFu doubled its total mining capacity to 22.9 EH/s by the end of last year from 11.1 EH/s a year earlier, while its hosting capacity further diversified across 24 sites over three continents to meet growing demand. Bitcoin production by customers using its cloud-mining solutions nearly doubled to 6,756 Bitcoins last year. “Our ability to flexibly allocate mining capacity between self-mining and cloud-mining services, and between leased and owned miners, based on our assessment of market dynamics and strategic forecasts, drove the rapid growth in our cloud-mining business in 2023,” said BitFuFu Chairman and CEO Leo Lu.

Market Reaction: BitFuFu shares fell 1.4% on Thursday in New York after the results were published. 

By Doug Young

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