SINGAPORE, April 11, 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 financial results for the full year ended December 31, 2023. Full Year 2023 Operational Highlights Hosting capacity of 515 MW diversified across 24 sites on three continents as of December 31, 2023, compared with 336 MW across 19 sites on one continent as of December 31, 2022 Total mining capacity increased 106.3% to a record 22.9 EH/s as of December 31, 2023, compared to 11.1 EH/S as of December 31, 2022 Cloud-mining registered users increased 61.5% to 304,270 as of December 31, 2023 compared to 188,460 as of December 31, 2022 Bitcoin ("BTC") production from self-mining operations increased 26.6% to 3,577 BTCs in 2023, from 2,825 BTCs in 2022 BTC production by customers from cloud-mining solutions increased 98.4% to 6,756 BTCs in 2023, from 3,405 BTCs in 2022 Cost to mine BTC from self-mining operations in 2023 averaged US$28,200 per BTC versus US$21,500 per BTC in 2022 Operational Highlights Metric As of December 31, 2023 2022 Hosting capacity (MW) 515 336 Total mining capacity (EH/s) (1) 22.9 11.1 Cloud-mining registered Users 304,270 188,460   For the Year ended December 31 2023 2022 BTC Produced     From BitFuFu self-mining operations 3,577 2,825 By customers from cloud-mining solutions(2) 6,756 3,405 Average BTC produced per day by customers and BitFuFu 28.3 17.1 (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 year by customers using mining capacity purchased from cloud-mining solutions.   Full Year 2023 Financial Highlights Total revenue was US$284.1 million in 2023, representing an increase of 43.3% from US$198.2 million in 2022 Revenue from cloud-mining solutions was US$178.0 million in 2023, representing an increase of 79.1% increase from US$99.4 million in 2022 Revenue from Bitcoin self-mining operations was US$100.2 million in 2023, representing an increase of 66.2% from US$60.3 million in 2022 Net income was US$10.5 million in 2023, representing an increase of 337.5% compared with US$2.4 million in 2022 Adjusted EBITDA was US$41.7 million in 2023, representing an increase of 5.3% compared with US$39.6 million in 2022 Combined balance of cash and cash equivalents and digital assets1 were US$76.0 million as of December 31, 2023, representing an increase of 11.1% compared with US$68.4 million as of December 31, 2022 BitFuFu raised US$75.1 million in connection with its business combination and listing on NASDAQ in March 2024. Leo Lu, Chief Executive Officer and Chairman of the Board of Directors, said, "In 2023, BitFuFu witnessed significant growth, reflecting the increasing recognition of the value we offer customers through our cloud-mining solutions. Our ability to flexibly allocate mining capacity between self-mining and cloud-mining services, and between leased and owned miners, based on our assessment of market dynamics and strategic forecasts, drove the rapid growth in our cloud-mining business in 2023." "Building on the momentum in our cloud-mining business, we plan to continue leveraging our competitive advantage in this segment, expand our operations and cultivate new partnerships with other industry players." Full Year 2023 Financial Results Revenue Total revenue in 2023 was US$284.1 million, representing an increase of 43.3% from US$198.2 million in 2022, primarily due to an increase in revenue from cloud-mining solutions and self-mining operations which was partially offset by the suspension of sales and leasing of mining equipment and sourcing services for mining equipment sales operations as part of the Company's strategic shift towards the development of its cloud-mining business in 2023. Revenue from cloud-mining solutions in 2023 was US$178.0 million, representing an increase of 79.1% from US$99.4 million in 2022, primarily due to increases in repeat purchases of cloud-mining services from existing customers and new customers, and increase in average selling price. Revenue from existing customers was US$138.9 million and new customers was US$39.1 million in 2023, accounting for 78.0% and 22.0% of revenue from cloud-mining solutions, respectively. In 2022, revenue from existing customers was US$66.0 million and new customers was US$33.4 million, accounting for 66.4% and 33.6% of revenue from cloud-mining solutions, respectively. Revenue from Bitcoin self-mining operations in 2023 was US$100.2 million, representing an increase of 66.2% from US$60.3 million in 2022, primarily due to an 88.4% year-over-year increase in the average hash rate used for self-mining operations and a 9.5% year-over-year increase in the annual average price of BTC produced, which was partially offset by an increase in blockchain difficulty2 for BTC mining resulting in a decrease in BTC output per tera-hash. BTC production from self-mining operations increased 26.6% to 3,577 BTCs in 2023, from 2,825 BTCs in 2022. Revenue from hosting services and others in 2023 was US$5.8 million, a decrease of 26.9% from US$8.0 million in 2022, primarily due to the temporary suspension of hosted miners by customers seeking to limit mining losses during periods when BTC prices were low. The Company did not generate revenue from its sourcing services for mining equipment, leasing services or sales of mining equipment in 2023, as part of the Company's strategic shift towards the development of its cloud-mining business. The Company generated US$18.8 million, US$1.3 million and US$10.4 million from its sourcing services for mining equipment, leasing services and sales of mining equipment in 2022, respectively. Cloud-mining solutions accounted for 62.7% of our total revenue in 2023, Bitcoin self-mining operations accounted for 35.2%, and hosting services and others accounted for 2.1%. Cost of Revenue Cost of revenue in 2023 was US$271.4 million, representing an increase of 67.5% from US$162.0 million in 2022, primarily due to costs associated with the expansion of its cloud-mining solutions and self-mining operations which was partially offset by a decrease in costs associated with hosting services and sourcing, leasing and sales of mining equipment. Operating Expenses Sales and marketing expenses in 2023 were US$1.9 million, representing a decrease of 5.3% from US$2.0 million in 2022. The decrease was primarily driven by an increase in market demand which partially reduced the need for advertising and promotional campaigns. General and administrative expenses in 2023 were US$3.7 million, representing an increase of 32.1% from US$2.8 million in 2022, primarily due to a US$0.5 million increase in payroll costs associated with the recruiting of additional talent and a US$0.3 million increase in consulting expenses associated with the Company's business development. Research and development expenses in 2023 were US$1.7 million, representing an increase of 11.3% from US$1.6 million in 2022, primarily due to an increase in payroll costs of technical and development employees. There were no impairment losses on mining equipment in 2023, compared to US$11.9 million in 2022. Impairment loss on digital assets in 2023 was US$7.0 million, representing a decrease of 45.7% from US$12.9 million in 2022, primarily due to the increase in BTC price in 2023. The Company did not implement the early adoption of FASB fair value accounting rules, ASU No. 2023-08, in 2023, and accordingly recognized impairment on digital assets whenever the carrying value of the Company's digital assets exceeds the fair value of the digital assets on daily basis. Gains on sales of digital assets in 2023 were US$18.2 million, compared with US$4.9 million in 2022. The increase was primarily due to a 50% year-over-year increase in the amount of BTC sold in 2023 and an increase in the difference between the selling price and the carrying value of BTC sold in 2023 driven by the increase in BTC price during the second half of 2023 when the sales were made. Net Income Net income in 2023 was US$10.5 million, compared with US$2.4 million in 2022. Adjusted EBITDA Adjusted EBITDA in 2023 was US$41.7 million, compared with US$39.6 million in 2022. Liquidity and Capital Resources As of December 31, 2023, the Company had cash and cash equivalents and digital assets of US$76.0 million, compared with US$68.4 million as of December 31, 2022. Conference Call The Company's management team will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Wednesday, April 11, 2024 (8:00 P.M. Singapore Time on the same day). All participants must register in advance of the conference call using the link provided below. Upon registration, each participant will receive a confirmation email containing dial-in numbers and a unique access PIN, which will be used to join the conference call. Registration Link: https://register.vevent.com/register/BIfe9b3031569c43b3946549eba3c175d1 Additionally, a live and archived webcast of the conference call will also be available ...