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BitFuFu revenue plunges as self-mining share rises
Second-quarter revenue dropped 62.9% year over year to $42.8 million, even as self-mined Bitcoin output rose 34% to 192 BTC.
BitFuFu Inc. (NASDAQ: FUFU) reported second-quarter results showing producing more Bitcoin did not translate into higher revenue. Revenue fell 62.9% year over year to $42.8 million, and the company swung to a $20.5 million net loss from a $47.1 million profit.
The firm said it allocated a larger portion of its hashrate to self-mining, which rose 47%. Self-mined production increased 34% to 192 Bitcoin, but cloud mining remained a major drag: Cloud Mining Solutions revenue dropped 73.6% to $24.9 million, which BitFuFu attributed to lower selling prices tied to weaker Bitcoin conditions and reduced order volumes.
BitFuFu also reported that equipment sales fell to zero from $5.2 million, and that cost of revenue rose to $43.7 million, exceeding total revenue. For self-mining, revenue declined to $14.0 million from $14.8 million, and the company pointed to a 27.5% drop in the average Bitcoin price to $71,600 and higher network difficulty, which reduced daily Bitcoin earned per terahash by 9.7%.
Yahoo Finance reported the results included a $16.9 million net fair-value loss on digital assets and related receivables or payables, which weighed on company-defined adjusted EBITDA, reported as negative $18.4 million. Shares closed 11% lower at $1.29 on August 17 after the release.
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