SINGAPORE, May 20, 2024 (GLOBE NEWSWIRE) -- BitFuFu Inc., ("BitFuFu" or "the Company") (NASDAQ:FUFU), a fast-growing digital asset mining service and world-leading cloud-mining service provider, today announced its unaudited financial results for the first quarter ended March 31, 2024. First Quarter 2024 Operational Highlights Hosting capacity of 644 MW diversified across 29 sites on three continents, compared with 513 MW across 22 sites on one continent during the same period of 2023 Total mining capacity under management increased 52.1% to a record 28.6 EH/s, compared to 18.8 EH/S during the same period of 2023 Cloud-mining registered users increased 63.5% to 321,184 as of March 31, 2024, compared to 196,468 as of March 31, 2023 Bitcoin ("BTC") production from self-mining operations decreased 11.0% to 1,103 BTCs from 1,239 BTCs in the same period of 2023 BTC production by customers from cloud-mining solutions increased 53.0% to 2,096 BTCs, compared with 1,370 BTCs in the same period of 2023 Cost to mine BTC from self-mining operations averaged US$39,182 per BTC versus US$21,908 per BTC in 2023 Metric As of March 31, 2024 2023 Hosting capacity (MW) 644 513 Total mining capacity under management (EH/s) (1) 28.6 18.8 Cloud-mining registered Users 321,184 196,468   Three Months Ended31 March, 2024 2023 BTC Produced     From BitFuFu self-mining operations 1,103 1,239 By customers from cloud-mining solutions(2) 2,096 1,370 Average BTC produced per day by customers and BitFuFu 35.5 29.3 (1) Defined as the hash rate that could theoretically be generated if all miners that have been energized are currently in operation including miners that may be temporarily offline. Hash rates are estimates based on the manufacturers' specifications. (2) Defined as the amount of BTC that was produced during the period by customers using mining capacity purchased from cloud-mining solutions. First Quarter 2024 Financial Highlights Total revenue was US$144.4 million, representing an increase of 149.0% from US$58.0 million in the same period of 2023 Revenue from cloud-mining solutions was US$81.5 million, an increase of 181.0% from US$29.0 million in the same period of 2023 Revenue from Bitcoin self-mining operations was US$60.1 million, an increase of 117.0% from US$27.7 million in the same period of 2023 Net income was $35.3 million, compared to US$2.7 million in the same period of 2023 Adjusted EBITDA (non-GAAP) was US$49.9 million, an increase of 430.9% from US$9.4 million in the same period of 2023 Combined balance of cash, cash equivalents, and digital assets1 were US$163.7 million as of March 31, 2024, compared with US$76.0 million as of December 31, 2023. Leo Lu, Chief Executive Officer and Chairman of the Board of Directors, said, "We started out the year incredibly strongly with total revenue growing 149% year-over-year to US$144 million and net income increasing more than twelve times from the same period last year. This rapid growth directly reflects the enormous synergies that are created by our asset-light strategy that flexibly adjusts and optimizes mining equipment to maximize profitability. 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. We are looking to improve our adaptability by acquiring existing mining facilities or constructing our own in the months ahead to optimize our cost structure and capital allocation even further and expand our bottom line." First Quarter 2024 Financial Results Revenue Total revenue in the first quarter of 2024 was US$144.4 million, representing an increase of 149.0% from US$58.0 million in the same period of 2023, primarily driven by growth in cloud-mining solutions and self-mining operations. Revenue from cloud-mining solutions in the first quarter of 2024 was US$81.5 million, representing an increase of 181.0% from US$29.0 million in the same period of 2023, primarily due to increases in repeat purchases of cloud-mining services from existing and new customers, and an increase in the average selling price. In the first quarter of 2024, revenue from existing customers was US$76.0 million and new customers was US$5.5 million, accounting for 93.0% and 7.0% of revenue from cloud-mining solutions, respectively. In the first quarter of 2023, revenue from existing customers of US$28.1 million and new customers of US$0.9 million, accounting for 96.9% and 3.1% of revenue from cloud-mining solutions of that period, respectively. Revenue from Bitcoin self-mining operations in the first quarter of 2024 was US$60.1 million, representing an increase of 117.0% from US$27.7 million in the same period of 2023. The increase was primarily driven by the optimization of mining operations and favorable market conditions including a 70.0% year-over-year increase in the average hash rate used for self-mining and a 134.0% year-over-year increase in the average price of BTC, which was partially offset by an increase in blockchain difficulty for BTC mining resulting in a decrease in BTC output per tera-hash. BTC production from self-mining operations decreased 11.0% to 1,103 BTCs, from 1,239 BTCs in the same period of 2023, as a result of the increase in blockchain difficulty for BTC mining. Revenue from hosting services and others in the first quarter of 2024 was US$2.1 million, representing an increase of 61.5% from US$1.3 million in the same period of 2023, primarily due to lower uptime of hosted miners during first quarter of 2023 as a result of the relocation of hosted miners during that period. Revenue from sales of mining equipment in the first quarter of 2024 was US$0.7 million, compared to no revenue from in the same period of 2023. In the first quarter of 2024, cloud-mining solutions accounted for 56.4% of total revenue, Bitcoin self-mining operations accounted for 41.6%, and hosting services and others accounted for 2.0%. Cost of Revenue Cost of revenue in the first quarter of 2024 was US$122.7 million, representing an increase of 120.7% from US$55.6 million in the same period of 2023, primarily due to an increase in costs associated with the expansion of the Company's cloud-mining solutions and self-mining operations, in line with the corresponding increase in revenue over the same period. Operating Expenses Sales and marketing expenses in the first quarter of 2024 were US$0.4 million, flat when compared to US$0.4 million in the same period of 2023. Despite the 181.0% year-over-year increase in revenue from cloud-mining solutions, the Company did not increase spending on advertising and promotional activities during the quarter due to strong market demand. General and administrative expenses in the first quarter of 2024 were US$1.9 million, representing an increase of 111.1% from US$0.9 million in the same period of 2023, primarily due to a US$1.2 million increase in legal and other consulting expenses associated with the Company's public listing on NASDAQ in March 2024 and other business development activities. Research and development expenses in the first quarter of 2024 were US$0.4 million, representing a decrease of 20.0% from US$0.5 million in the same period of 2023, primarily due to a decrease in payroll costs to technical and development employees. There were no impairment losses on digital assets during the quarter, compared to US$1.7 million during the same period of 2023. Starting from January 1, 2024, the Company implemented the early adoption of FASB fair value accounting rules, ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets. The Company recognized a fair value gain on BTC of US$11.8 million that has yet to be realized as of March 31, 2024. Gain on sales of digital assets in the first quarter of 2024 was US$13.1 million, representing an increase of 191.1% from $4.5 million during the same period of 2023. The increase was primarily due to the increase in the volume of BTC sold. The remaining BTC the Company holds will be retained for further potential capital appreciation, reflecting the Company's careful and strategic management of its digital asset portfolio and ability to capitalize on favorable market conditions. Net Income Net income in the first quarter of 2024 was US$35.3 million, compared ...