Release Date: June 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BitFuFu Inc (FUFU, Financial) announced a significant rebound in total mining capacity, reaching 34.1 exa hash by the end of May 2025, indicating strong recovery and growth.
- The company successfully closed the acquisition of a mining facility in Oklahoma, advancing its vertical integration strategy and increasing self-owned hashrate.
- BitFuFu Inc (FUFU) expanded its global footprint by adding new customers in key growth markets in Africa and Asia, diversifying its revenue base.
- The company achieved an 18% reduction in average electricity prices compared to the first quarter of 2024, optimizing its cost structure.
- BitFuFu Inc (FUFU) secured access to up to 80,000 Antminer S21 series, ensuring ample supply to support business development and maintain competitiveness.
Negative Points
- First quarter 2025 revenue declined by 46% year-over-year to $78 million, impacted by increased network difficulty and the April 2024 Bitcoin halving event.
- The company reported a net loss of $16.8 million, primarily due to the mark-to-market adjustment on Bitcoin holdings.
- Adjusted EBITDA was negative $10.8 million, affected by a $19.4 million unrealized fair value loss of digital assets.
- Total mining capacity under management decreased to 20.6 exa hash from 28.6 exa hash as of March 31, 2024, due to expired contracts and supplier disruptions.
- The company faces potential risks from US tariffs on mining hardware sourced from Southeast Asia, which could impact its cost structure.
Q & A Highlights
Q: Can you provide an overview of BitFuFu's first-quarter 2025 financial performance?
A: Leo Lu, Chairman and CEO, reported that BitFuFu's first-quarter 2025 revenue was $78 million, a decline from $144 million in the same period of 2024. The net loss was $17 million, and adjusted EBITDA was negative $11 million, impacted by a $19.4 million unrealized fair value loss of digital assets. The decline in revenue was attributed to increased network difficulty and the April 2024 Bitcoin halving event.
Q: What were the main factors affecting BitFuFu's mining capacity in the first quarter of 2025?
A: Leo Lu explained that the decline in mining capacity was due to the expiration of certain hashrate procurement contracts and miner fleet relocations and hardware upgrades by suppliers. However, there was a strong recovery with hashrate increasing to 34.1 exa hash by the end of May, driven by the latest generation Antminer S21 series.
Q: How is BitFuFu managing its supplier relationships and supply chain risks?
A: Leo Lu highlighted that BitFuFu broadened its network by adding new partners and increasing orders from existing ones. The company created structures to manage supplier default risks and cash flow, allowing it to expand its supplier base. This strategy included onboarding new suppliers and scaling deliveries significantly.
Q: What are BitFuFu's plans for capital expenditures and expansion in 2025?
A: Leo Lu stated that BitFuFu is evaluating opportunities in the US, Canada, and other regions, focusing on acquiring controlling interests in mining facilities. The company aims to leverage joint venture structures for capital efficiency and local expertise. BitFuFu also plans to expand its global footprint, particularly in Africa and Asia, to diversify its revenue base.
Q: How is BitFuFu addressing credit and counterparty risk management?
A: Calla Zhao, CFO, explained that BitFuFu conducts thorough risk assessments before partnerships and requires secured assets in commercial arrangements. Most customers pay service fees in advance, and VIP clients pledge Bitcoin as collateral. The company stores most crypto assets in cold wallets and ensures hot wallets are insured.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
