Earnings call transcript: BitFuFu Q2 2025 sees stock surge after strong revenue growth

BitFuFu Inc (FUFU) announced robust Q2 2025 financial results, showcasing a significant revenue increase and substantial net income growth. Following the earnings release, BitFuFu’s stock price rose sharply in premarket trading, reflecting positive investor sentiment. The company’s strategic advancements in mining technology and operational efficiency contributed to its strong performance. According to InvestingPro data, the company currently trades at a high P/E multiple of 322x, suggesting investors are pricing in significant future growth expectations.

Key Takeaways

• BitFuFu’s Q2 2025 revenue surged by 47.9% from the previous quarter.
• Net income increased dramatically to $47.1 million, up from $1.3 million a year ago.
• The stock price climbed 9.32% in premarket trading.
• BitFuFu expanded its mining capacity and reduced electricity costs.
• The company plans to explore power generation and asset tokenization.

Company Performance

BitFuFu demonstrated a strong financial performance in Q2 2025, driven by increased revenue from its cloud mining operations and enhanced operational efficiency. The company reported a total revenue of $115.4 million, marking a 47.9% increase from Q1. This growth was supported by strategic investments in mining technology and a significant rise in managed mining capacity.

Financial Highlights

• Revenue: $115.4 million, a 47.9% increase from Q1.
• Net Income: $47.1 million, up from $1.3 million in the previous year.
• Adjusted EBITDA: $60.7 million, compared to $8.3 million last year.
• Diluted Earnings per Share: $0.18 for the first half of 2025.

Market Reaction

Following the earnings announcement, BitFuFu’s stock price rose by 9.32% in premarket trading, reaching $4.34. This increase reflects investor confidence in the company’s improved financial performance and strategic initiatives. The stock’s current price is approaching its 52-week high of $6.24, indicating strong market sentiment. InvestingPro analysis shows analyst price targets ranging from $5.50 to $10.27, suggesting potential upside. With a beta of 0.32, the stock has shown relatively low volatility compared to the broader market. Discover 8 more exclusive ProTips and comprehensive valuation metrics with InvestingPro.

Outlook & Guidance

BitFuFu aims to become a vertically integrated power generation and mining company. The company is exploring natural gas power generation and the tokenization of real-world assets. With a projected Bitcoin price of $200,000 by 2025, BitFuFu is focusing on expanding its cloud mining, self-mining, and mining machine sales.

Executive Commentary

CEO Leo Lu expressed optimism about the company’s future, stating, "We believe that Bitcoin hash rate and the Bitcoin it generates represent a standardized predictable and sustainable asset class." He emphasized the company’s commitment to compliance and investor protection, noting, "Our priority is to work with licensed institutions, protecting investor interests while maintaining the highest standards of compliance."

Risks and Challenges

• Fluctuations in Bitcoin prices could impact revenue.
• Regulatory changes in cryptocurrency markets pose risks.
• Increasing competition in the mining industry.
• Potential operational challenges in expanding power generation.
• Dependence on electricity costs for profitability.

By focusing on innovation and strategic growth, BitFuFu aims to solidify its position in the competitive cryptocurrency mining industry, while navigating potential risks and challenges.

Full transcript - BitFuFu Inc (FUFU) Q2 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to the Bitfufu Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to our first speaker today, Charlie Brady.

Please go ahead, sir.

Charlie Brady, Investor Relations, Bitfufu: Thank you, operator. Good morning, and welcome to Bitfufu’s second quarter twenty twenty five earnings call. The company’s financial results were released earlier today and are available on Bitfufu’s Investor Relations website at ir.bitfufu.com and globalnewswire.com. Joining me on the call today are Bitfufu’s Chairman and CEO, Leo Lu and CFO, Kao Le Zhao. Before we begin, please note that the discussion today will contain forward looking statements made under the Safe Harbor provisions of The US Private Securities and Litigation Reform Act of 1995.

Statements that are not historical facts, including statements about the company’s beliefs and expectations, are forward looking statements. Forward looking statements involve risks and uncertainties that may cause actual results to differ materially from the management’s current expectations. Its potential risks and uncertainties include, but are not limited to, those outlined in the company’s public filings with the SEC. The company does not undertake any obligation to update any forward looking statement, except as required under applicable law. We will be discussing non GAAP financial information on this call.

The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in The United States, or GAAP. You can find a reconciliation of these metrics to the company’s reported GAAP results in the reconciliation tables provided in today’s earnings release. Just one final note, although we will not be conducting a Q and A on this call, questions can be emailed to ir@bitfufu.com, and we will respond as quickly as possible, generally within twenty four hours. I will now turn the call over to Leo Lu, chairman and CEO of the company.

Leo Lu, Chairman and CEO, Bitfufu: Thanks, Charlie. Thank you for joining Bitfufu’s second quarter twenty twenty five earnings conference call. Before handing over to Kala for a detailed review of our financial results, I will provide some key highlights from the second quarter, update on key strategic initiatives, and share our outlook for the remainder of the year. In the 2025, we achieved total revenue of $115,400,000 a 47.9% increase from $78,000,000 in the first quarter. Adjusted EBITDA reached $60,700,000 with net income of $47,100,000 a strong rebound from the first quarter.

The significant improvement in the second quarter financial performance resulted in total first half twenty twenty five financial performance of $193,400,000 in revenue, dollars 30,300,000.0 in net income, 49,900,000.0 in adjusted EBITDA and diluted earnings per share of $0.18 These results reflect not only the rise in Bitcoin prices, but more importantly, the strength of our strategic decisions, investing in fleet upgrades, expanding our hosting capacity, diversifying our revenue streams and securing low cost, stable power sources. Together, these initiatives have strengthened our competitive position and created a solid foundation for long term growth. These accomplishments are a direct result of the dedication, skill, and relentless pursuit of excellence by the Bitfufu team whose efforts continue to drive our vision forward. As of June 30, our total managed mining capacity reached 36.2 exahashes per second, a record high since our founding and placing us among the leaders in The US public mining industry. Our hosting capacity also reached a new record of seven twenty eight megawatts.

The rise in the Bitcoin price this quarter fueled strong demand for cloud mining, leveraging our scale, operational efficiency and trusted brand. We secured significant computing capacity from multiple new providers to deploy into our cloud mining platform, enabling us to meet the growing market demand and strengthen our competitive position. This momentum continued into third quarter. As of July 31, our total mining capacity further increased to 38.6 exahashes per second. Our hosting capacity expanded to seven fifty two megawatts, and the number of registered cloud mining users exceeded 629,000.

These early third quarter figures demonstrate our ability to maintain growth beyond this quarter and reflect our strong operational execution and market demand. In terms of operations, Bitfufu has continuously expanded its mining machine fleet. Since 2025, the company has purchased over 20,000 minuteing machines, including about 10,000 Antminer S21 series machines, which the theoretical minimum power consumption of the S21 series machines is as low as 13.5 joule per terahash, significantly increasing mining profitability. We have also achieved excellent results in cost control. In the second quarter, the average bare electricity price for our own mining farms fell to 3.6 to 4.2¢, with prices as low as 3.14¢ at our African mining farms.

This reduction in energy costs has significantly increased profitability in our proprietary mining operations. For example, with the recent price of Bitcoin around $120,000 the direct cost of mining one Bitcoin using the S21XP mining machines deployed at our own mining farms is 29,000. This year, Bitfufu’s own mining farms in North America and Africa have performed exceptionally well. We deployed and optimized our Bitfufu OS overclocking technology, enabling mining machine chips to operate more efficiently at higher speeds and unlocking greater performance from our fleet. In the 2025, even as our mining farms participated in regional power to curtailment programs and operated below full load.

Firmware enhancements increased the hash rate operating efficiency of our S21 series miners to 100.5%. This optimization boosted the output of each mining machine while supporting large scale power rationing initiatives, reducing electricity costs and maintaining strong profitability despite seasonal high temperatures and electricity price volatility in North America. These results highlight our ability to combine operational discipline, technological innovation and market adaptability to deliver consistent value. We intend to actively participate in electricity plans in The US market and continue exploring alternative sources of low cost electricity in North America and around the world. Another key strategic direction for Bitfufu is exploring a self generated mining model by sourcing natural gas and deploying generators in North America and Africa.

We aim to secure stable, low cost electricity, thereby better controlling costs and ensuring supply security. This strategy is a significant step towards becoming a more vertically integrated power generation and mining company, enabling us to control key links in the value chain. In Canada, for example, we are evaluating opportunities to leverage low cost natural gas for power generation. The current AECO natural gas price, Canada’s benchmark for natural gas traded in Alberta is approximately 80¢ Canadian per gigajoule, a standard unit of energy equal to about two seventy eight kilowatt hours. At a 33% efficiency rate, meaning one third of the energy in the natural gas is converted to electricity and current exchange rates, this translates to a tax inclusive electricity generation cost of less than $01 per kilowatt hour.

Securing natural gas power generation capabilities could provide a long term stable structural advantage in the unit cost of hash rate production. Looking ahead, Bitfufu aims to maintain industry leading electricity costs by mastering the entire supply chain from fuel to electricity, relying more on clean energy and significantly reducing our reliance on the public grid and market electricity prices. We will shift from passively accepting electricity price fluctuations to proactively managing energy costs, thereby gaining structural competitive advantages in expanding hash rates, resisting cyclical fluctuations, and responding to policy changes. Another important business development direction is the combination of RWA and cloud hash rate. RWA or real world assets refers to the digitization and tokenization of existing real world assets with value and cash flow, including government bonds, corporate loans, gold, real estate, and even intellectual property on the blockchain.

Technically, this involves using on chain smart contracts to record asset rights, distribute returns and execute transfers. Financially, it transforms assets previously tradable only within traditional financial markets into digital certificates that can circulate across borders 20 fourseven. The value of RWA lies in significantly improving asset liquidity, reducing transaction and financing costs, and enabling investors to more efficiently allocate capital globally. We’ve recently observed that RWA have moved from the conceptual stage to compliant application. For example, platforms like MakerDAO and Ondo Finance have tokenized low risk assets like US Treasury bonds, enabling direct on chain access and trading, satisfying the demand for safe assets in on chain stablecoins and DeFi protocols.

In the commodity sector, gold tokenization products like Paxos Gold and Tether Gold provide digital holding and instant trading capabilities for gold, reducing the complexity of storage and cross border transactions. We believe that Bitcoin hash rate and the Bitcoin it generates represent a standardized predictable and sustainable asset class similar in nature to other securitized cash flow assets. In the future, we may be able to structure and issue the income rights from hash rate output, future output expectations, or mining cash flows over a specific period in the form of RWA within a compliant framework. For example, this structure could allow investors to gain proportional exposure to BTC cash flows without directly participating in the procurement operation and energy management of mining equipment. It also allows us to more flexibly attract institutional capital, expand asset liquidity, and build bridges between on chain and off chain markets.

We believe the combination of cloud mining and RWA could expand from the primary mining market to the secondary RWA trading market. With a mature application and development of stablecoins and RWA, the demand for cloud hash rate could increase exponentially. At the same time, RWA based derivatives trading could further expand and enrich trading scale and profit models. As a leading global cloud computing platform, Bitfufu has been transacting cloud hash rate at scale for several years, making us a natural partner for many RWA institutions in this space. We will carefully evaluate opportunities in this area, ensuring all operations meet the regulatory requirements of a NASDAQ listed company and the jurisdictions in which we operate.

Our priority is to work with licensed institutions, protecting investor interests while maintaining the highest standards of compliance. Finally, I’d like to share my perspective on Bitcoin market trends. Since the approval of the first US spot Bitcoin ETF in early twenty twenty four and most recent Bitcoin halving, market optimism has increased and remained strong. Forecasts from various market participants range from the low hundreds of thousands to several $100,000 per BTC with projected timelines spanning from this later this year to 02/1930. I believe that the price of Bitcoin currently around $120,000 isn’t the peak for the year and still has room to increase in the second half of this year.

For example, institutions like Standard Chartered, Bernstein and Bitwise all predict that Bitcoin will reach approximately $200,000 by the 2025. This is driven by three key factors. First, Bitcoin spot ETFs continue to attract capital. Data shows that by the 2024, Bitcoin ETFs had invested over $100,000,000,000 with over $50,000,000,000 flowing into ETFs since the 2025, providing significant momentum. Second, institutional holdings are steadily accumulating.

Currently, nearly 100 publicly listed companies hold Bitcoin with a total value exceeding $100,500,000,000 Whether mining companies like Bitfufu or publicly listed companies that hold Bitcoin but don’t mine, they all believe in the future of Bitcoin and are increasing their holdings, which is greatly supporting and stimulating market confidence. Third, the halving effect creates a continuous contraction in supply, naturally increasing scarcity. With CIRCLE’s listing this year and the implementation of regulatory frameworks like the Genius Act, the overall stablecoin market capitalization has reached approximately $281,000,000,000 We are also pleased to see the US government’s latest executive order liberalizing the use of alternative assets like Bitcoin in four zero one k accounts. Recent favorable policies for various cryptocurrencies have laid a solid foundation for Bitcoin’s price growth. I am optimistic about BTC’s price performance in the second half of this year, and I believe this cycle of price appreciation has just begun.

I anticipate this year will be a good year for Bitfufu, and there will be many opportunities for growth and development in the business over the next three years. With that said, I will turn the call over to Kala to provide more details on our financial results.

Kao Le Zhao, CFO, Bitfufu: Thank you, Leo. Good morning, everyone. Now I would like to present our second quarter twenty twenty five financial and operating results. Total revenue for the quarter was $115,400,000 a 47.9% increase from $78,000,000 in the first quarter of this year. This strong sequential growth was driven by increased demand for our cloud mining solutions, rising Bitcoin prices and continued upgrades to our mining fleet.

Cloud mining revenue increased to $94,300,000 a 22.3% year over year increase and a 75.6 increase compared to the first quarter. For the quarter, cloud mining revenue accounted for 81.7% of total revenue. Self mining revenue was $14,800,000 representing 12.8% of total revenue, while mining equipment sales revenue was $5,200,000 representing 4.5% of total revenue. Other revenue sources such as mining machine hosting accounted for the remaining 1%. In the cloud mining sector, customer demand for cloud hash rate grew strongly this quarter, with demand exceeding supply.

New customers contributed approximately 51% of cloud mining revenue in the second quarter, while existing customers contributed approximately 49%. In terms of operations, by the June, the company’s total managed mining capacity reached 36.2% exahash, a year on year increase of 46.6%, setting a new company record. Hosting capacity also reached a new all time high of seven twenty eight MW, up from five twenty two MW in the same period last year. Total Bitcoin output for the quarter was approximately $10.60 Bitcoins, of which 143 Bitcoins came from self mining and $9.17 Bitcoins from client cloud mining activities. Quarterly costs were $102,500,000 a decrease of 13.4% compared to the same period in 2024.

This decrease reflects lower electricity costs per terahash and continued improvements in procurement and operational efficiencies. We have made significant progress in upgrading our mining equipment. So far this year, we have purchased about 10,000 S21 series miners, which will improve overall efficiency. Additionally, we dedicated human resources and funding to exploring LEO’s previously stated goal of becoming a more vertically integrated power generation and mining company. By investing in our own power generation capacity and mining infrastructure, we will enable Bitfufu to better control energy costs and supply security, thereby improving profitability and reducing long term operational risks.

Operating expenses for the 2025 reflect our continued investment in growth, while maintaining strict cost management. Sales and marketing expenses were $600,000 and R and D expenses were $400,000 essentially flat compared to the same period in 2024. General and administrative expenses were $2,100,000 This compares to $1,400,000 in the 2024. We remain committed to ensuring that operating expenses grow in a controlled manner relative to revenue, while making targeted investments in talent, product innovation and market expansion. Net income for the quarter was $47,100,000 a significant increase from $1,300,000 in the same period last year and a strong rebound from losses in the first quarter.

This performance included an unrealized fair value gain of $39,600,000 reflecting positive Bitcoin market conditions. Adjusted EBITDA was $60,700,000 compared to $8,300,000 in the same period last year. For the three months ended 06/30/2025, basic and diluted earnings per ordinary share were $0.29 and $0.28 respectively, compared to $01 for both in the same period of 2024. As of 06/30/2025, the company held $211,400,000 in cash, cash equivalents and digital assets, compared to $168,100,000 as of 12/31/2024. This increase was primarily driven by the company’s treasury management strategy, which supported liquidity, and the appreciation in the value of its Bitcoin holdings during 2025.

Looking ahead, we will continue to focus on expanding our three core business lines: Cloud mining, self mining and mining machine sales, while exploring new growth opportunities such as mining farm management software and the other strategic goals previously mentioned. We believe these initiatives will further strengthen our market position and support long term sustainable growth. This concludes my remarks. I would now like to give the final remarks to Leo.

Leo Lu, Chairman and CEO, Bitfufu: Thank you, Kala. Before I close, I want to thank our employees, partners and shareholders for their continued support and trust. In summary, the second quarter was a pivotal one for Bitfufu. We achieved strong quarter over quarter growth, improved profitability, and continued to solidify our leading position in both self mining and cloud mining. The increased demand for our cloud mining services, particularly from new customers and the continued efficiency gains from our fleet upgrades underscore the strength of our platform and the scale advantages we’ve diligently built.

As we head into the second half of the year, we will remain focused on disciplined execution, efficient operations and continued expansion of our capabilities. Our strong balance sheet, scalable infrastructure and talented team provide us with the resources and flexibility to capitalize on market opportunities and create long term value for shareholders. Thank you again for your participation today and your continued support. We look forward to updating you on our progress in the coming quarters. Thank you.

Conference Operator: This concludes today’s conference call. Thank you for participating. You may now all disconnect. Have a nice day.

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