BitFuFu, a leading digital asset mining service provider, announced a substantial increase in its net income for the first quarter of 2024. The company’s net income soared to $35.3 million, up from just $2.7 million in the same period last year, marking a significant 13-fold increase.
BitFuFu is not the only crypto miner to record stellar performance in the first quarter of 2024. Various other crypto-mining companies also achieved remarkable growth in the same period.
BitFuFu Stock Underperforms Despite Positive Q1 Reports
BitFuFu credits this growth to its strategic cloud-mining solutions and robust Bitcoin self-mining operations. Total revenue for the quarter reached $144.4 million, a 149% increase from the previous year’s $58.0 million.
Moreover, cloud-mining revenue, which surged to $81.5 million, up 181% from the prior year, was a considerable part of this growth.
The company’s Bitcoin self-mining operation revenues reached $60.1 million, up 117% from last year. This was facilitated by optimized mining operations and favorable market conditions, although a higher mining difficulty slightly impacted overall Bitcoin output.
Read more: BitFuFu Review 2024: A Guide to The Cloud Mining Platform
Leo Lu, CEO and Chairman of BitFuFu commented on the results, emphasizing the benefits of their business model.
“Our cloud-mining solutions allow us to reduce revenue volatility created by sharp swings in digital asset prices and significantly strengthen cash flow by pre-selling hashrate at a fixed price that can be invested in expanding our business,” Lu said.
Regarding operational costs, the cost of revenue climbed to $122.7 million, representing a 120.7% increase. This rise was primarily due to expanded operations in cloud-mining and self-mining.
The company’s EBITDA also showed positive trends, with adjusted figures reflecting a 430.9% increase to $49.9 million. This includes an $11.8 million unrealized gain on Bitcoin, attributed to the early adoption of new accounting rules for digital assets.
Despite these strong financial outcomes, BitFuFu’s stock experienced a decline of over 6% on May 20, 2024, with a significant year-to-date drop of over 60%.
BitFuFu’s Q1 2024 report aligns with the broader industry trend. Notably, other crypto miners like Core Scientific have also reported strong performances.
Core Scientific rebounded from bankruptcy, reporting a net income of $210.7 million in the first quarter of 2024. Its recovery was largely due to a strategic overhaul of operations and financial management, which included significant gains from extinguishing pre-emergence obligations.
Read more: Best Crypto Mining Stocks to Buy or Watch Now
Marathon Digital also showcased impressive results in the same period, with revenues soaring by 223% year-over-year to $165.2 million. Its net income increased by 184% to $337.2 million, bolstered by efficient operational advancements and increased Bitcoin mined.
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