Despite higher revenues, BitFuFu's net profit shrank by 75%.
This was due to a surge in BTC production costs, averaging $33,000 per coin.
A publicly listed Bitcoin (BTC) miner from Wall Street, BitFuFu Inc. (NASDAQ: FUFU), has reported
a significant increase in crypto mining costs and a sharp decline in net income
for the second quarter of 2024, despite strong revenue growth.
Bitcoin Miner BitFuFu
Reports Surging Costs, Lower Profits in Q2
The
company's cost to mine one Bitcoin from self-mining operations soared to
$51,887 in Q2 2024, up from $19,344 in the same period last year. This 168%
increase in mining costs comes as the cryptocurrency industry grapples with
higher energy prices and increased mining difficulty following the Bitcoin
halving event in April.
Despite a
69.7% year-over-year (YoY) increase in total revenue to $129.4 million,
BitFuFu's net income fell to $1.3 million in Q2 2024, compared to $5.1 million
in the same quarter of 2023. The company attributed this decline partly to a
non-cash unrealized fair value loss of $16.4 million on its Bitcoin holdings.
Calla Zhao, the Chief Financial Officer of BitFuFu
However, Calla
Zhao, BitFuFu's Chief Financial Officer, claims that the company maintained a healthy balance sheet with a net cash position of $52.5 million, “which
provides a solid foundation to execute on our growth strategy.”
The
company's Bitcoin production from self-mining operations decreased by 23.1% to
780 BTCs in Q2 2024, down from 1,014 BTCs in the same period last year. This
decline was primarily due to the increase in blockchain difficulty for Bitcoin
mining and the impact of the halving event.
Net profits
also rose, as both companies have decided to move towards supporting AI and
high-performance computing. According to VanEck analysis, an increasing number
of companies in the industry are doing this, eyeing a $38 billion opportunity.
Cloud-Mining Operations Up
Despite
these challenges, BitFuFu reported strong growth in its cloud-mining business,
with registered users increasing 86.8% YoY to 395,056.
“We saw a
substantial increase in our cloud-mining registered user base, surpassing
395,000 users as of June 30,” commented Leo Lu, Chairman and Chief Executive
Officer of BitFuFu. “This represents an 87% increase year-over-year and a 23%
rise sequentially from the first quarter of 2024.”
And
although the number of Bitcoins produced by clients using the cloud-mining
service also declined, reaching 1,272 BTC compared to 1,797 BTC in the same
period the previous year, it did not harm the overall revenue structure.
Revenue from cloud-mining solutions rose 66.8% to $77.0 million, accounting for
59.5% of total revenue.
“Cloud-mining
revenue contributed approximately 60% of BitFuFu’s second-quarter revenue. Our
cloud-mining business enables us to effectively lock in the price of Bitcoin,
serving as a hedge against Bitcoin price volatility,” Lu added.
BitFuFu has been listed on
Wall Street only since this year, executing plans announced back in 2022.
Although it is not among the top 5 miners on Nasdaq with a capitalization of
700 million dollars (falling about $1 billion short of the fifth, Core Scientific),
the company's actions are definitely attracting investor attention.
A publicly listed Bitcoin (BTC) miner from Wall Street, BitFuFu Inc. (NASDAQ: FUFU), has reported
a significant increase in crypto mining costs and a sharp decline in net income
for the second quarter of 2024, despite strong revenue growth.
Bitcoin Miner BitFuFu
Reports Surging Costs, Lower Profits in Q2
The
company's cost to mine one Bitcoin from self-mining operations soared to
$51,887 in Q2 2024, up from $19,344 in the same period last year. This 168%
increase in mining costs comes as the cryptocurrency industry grapples with
higher energy prices and increased mining difficulty following the Bitcoin
halving event in April.
Despite a
69.7% year-over-year (YoY) increase in total revenue to $129.4 million,
BitFuFu's net income fell to $1.3 million in Q2 2024, compared to $5.1 million
in the same quarter of 2023. The company attributed this decline partly to a
non-cash unrealized fair value loss of $16.4 million on its Bitcoin holdings.
Calla Zhao, the Chief Financial Officer of BitFuFu
However, Calla
Zhao, BitFuFu's Chief Financial Officer, claims that the company maintained a healthy balance sheet with a net cash position of $52.5 million, “which
provides a solid foundation to execute on our growth strategy.”
The
company's Bitcoin production from self-mining operations decreased by 23.1% to
780 BTCs in Q2 2024, down from 1,014 BTCs in the same period last year. This
decline was primarily due to the increase in blockchain difficulty for Bitcoin
mining and the impact of the halving event.
Net profits
also rose, as both companies have decided to move towards supporting AI and
high-performance computing. According to VanEck analysis, an increasing number
of companies in the industry are doing this, eyeing a $38 billion opportunity.
Cloud-Mining Operations Up
Despite
these challenges, BitFuFu reported strong growth in its cloud-mining business,
with registered users increasing 86.8% YoY to 395,056.
“We saw a
substantial increase in our cloud-mining registered user base, surpassing
395,000 users as of June 30,” commented Leo Lu, Chairman and Chief Executive
Officer of BitFuFu. “This represents an 87% increase year-over-year and a 23%
rise sequentially from the first quarter of 2024.”
And
although the number of Bitcoins produced by clients using the cloud-mining
service also declined, reaching 1,272 BTC compared to 1,797 BTC in the same
period the previous year, it did not harm the overall revenue structure.
Revenue from cloud-mining solutions rose 66.8% to $77.0 million, accounting for
59.5% of total revenue.
“Cloud-mining
revenue contributed approximately 60% of BitFuFu’s second-quarter revenue. Our
cloud-mining business enables us to effectively lock in the price of Bitcoin,
serving as a hedge against Bitcoin price volatility,” Lu added.
BitFuFu has been listed on
Wall Street only since this year, executing plans announced back in 2022.
Although it is not among the top 5 miners on Nasdaq with a capitalization of
700 million dollars (falling about $1 billion short of the fifth, Core Scientific),
the company's actions are definitely attracting investor attention.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Second JavaScript Exploit in Four Months Exposes Crypto Sites to Wallet Drainers
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
