BitFufu Rides Crypto Wave, Flexible Business Model – BAMBoo Works

The digital asset mining service provider develops his portfolio of mining machines and self -managed data centers, where high encryption prices support strong revenues and profits

Main meals:

• BitFUFU’s revenues grew by 63 % in 2024, when its annual net profit increased by more than five times
• The digital asset service provider benefits from the latest cryptocurrency boom, and is now looking to enhance its mining process to improve profitability

By Warren Yang

Good times rolling BitFUFU Inc. (Fufu.us), which does not show any signs of stability for the current situation.

In the midst of the latest return to encrypted currencies, including more than 30 % in the price of bitcoin during the past six months, the digital asset mining service provider has a large jump in its profits. But BitFUFU does not stop there. She quickly builds her encryption mining work, whose fruits can be well affected if the current boom continues – although the duration of which anyone will be guessed.

BitFUFU’s revenues grew by 63 % to 463.3 million dollars last year of 2023, when a net profit increased more than five times to $ 54 million, according to what it said. The latest annual results Issued last week. The company has benefited from working in cryptocurrencies in the bull race after a long stagnation, driven by events that include half in the new Bitcoin supplies and Donald Trump’s electoral victory in the US presidential elections, which already show signs of the production of favorable policies of digital assets. Entity around cryptocurrencies reached an escalation at the end of last year when bitcoin prices reached $ 100,000 for the first time.

Increasing BitFUFU against this background is not very surprising, because the wealth of services associated with encryption providers is closely related to movements in the virtual asset market. The company also has its Bitcoin mining business, which means that the increase in Bitcoin prices translates directly into its own revenue gains. This reflects, Bitcoin mining increased by 57 % to $ 157.5 million last year, which is slightly faster than 52 % of cloud mining services, despite its actual bitcoin’s actual production decreased after the event of half in April.

Although the cryptocurrency over the past few years, BitFufu is noticeable to the fact that it has not recorded a net loss since its foundation in 2020, including during the last 2021 encoding incident, which killed many of its peers as victims. At its lowest point in 2022, the company almost failed to collapse, but it was still able to defend profitability, even if its profits for the stock (EPS) in that year are small.

“We are one of the few bitcoin mining companies that were publicly traded and that has generated the profitability of the positive arrow every year since 2021,” BitFufu Lu Leo, founder of the company, said at the company’s conference. “This emphasizes the profitability and flexibility of our business model, regardless of bitcoin courses.”

The main operational power of BitFufU is its flexible business model, which enables it to allocate the mining capacity between its mining operations and mining services based on the gospel of the correspondence for its customers, as well as between the rented equipment owned by the same, depending on market conditions.

Now, the company is looking to gradually develop its portfolio of self -owned mining machines and data centers, a strategic shift indicating that it believes that the emerging market for virtual assets is likely to bear the long term. Recently, BitFUFU announced in February the completion of the acquisition of the majority stake in the Bitcoin Mining Data Center in the US state of Oklahoma, after the conclusion of a final agreement last October to obtain a facility in Ethiopia. In January, BitFUFU announced that it had signed a contract with Bitmain, who was one of the company’s first investors and is still its largest resource, to buy up to 80,000 pcs for coding over two years.

Cost savings

Physical assets such as mining machines and data centers such as those that buy BitFufU inevitably costs a decrease in consumption of the company. But this direct ownership can also lead to the cost savings of BitFufu by eliminating the need to pay against third -party machines and hosting services. Lu said at a phone conference that BitFUFU reduced the average cost of hosting a quarter in 2024 compared to the previous year by transferring some mining machines from American sites to the Ethiopia Data Data Center. This is great savings.

BitFUFU basic cloud mining also continued last year. This process is designed on a cloud platform that allows users to allocate digital assets, which provides them with money by getting rid of the need to buy expensive mining equipment. Such services may become more attractive to the encryption mines after it has become half the Bitcoin event since it has become more important cost control, and now after the rewards have been reduced to mining efforts by half in terms of production.

The number of registered users of the BitFUFU service for approximately cloud connection doubled to about 592,000 at the end of 2024 from the previous year. Its current customers seem to wander. They were approximately 77 % of the company’s cloud mining services revenues in 2024, helping its repeated revenues for this year exceed the level of 2023. This ability to keep customers is the key to any good work, and it appears that your product has been well received and facilitates building your customer base.

BitFUFU shares have gained about 4 % last year and now they are trading in a price of 1.58 P/S, and is behind 6.03 for a biggest competitor. Riot control platforms (RIOT.US) and 5.46 leading global mines workers Mara (Mara.us), which is greater than five times than BitFUFU. It seems that this gap indicates that many investors have not yet discovered the company, indicating the potential orientation of its shares.

BitFUFU’s ability to use its flexible business model to find consistent profits in a reputable volatile industry is worthy of praise. Its current focus on collecting its mining assets appears smart in the current environment compared to some of its peers. Cloud mining solutions can help relieve risk if cryptocurrency withdraws again – which is inevitable.

But again, those cryptocurrencies themselves showed a strange ability to bounce again over and over again, which means that the company should be able to absorb such decline if it can build a sufficient temporary store to overcome bad times. It has already been offered as soon as he has this ability, and it is one of the most important assets for any company in this emerging sector with high fluctuations.

Bamboo Works offers a wide mix of coverage of Chinese companies listed in the United States and Hong Kong, including some advertising content. For additional inquiries, including questions about individual articles, please contact us by clicking here

To subscribe to the free weekly newsletter of Bamboo Works, click here