Earnings call transcript: BitFuFu Q3 2025 shows revenue doubling, stock surges

BitFuFu Inc. (BITF) reported a robust third quarter for 2025, with total revenue reaching $180.7 million, a doubling from the previous year. The company posted a net income of $11.6 million, a significant turnaround from a $5 million loss in the same period last year. Earnings per share (EPS) came in at $0.07, compared to a $0.03 loss previously. In premarket trading, BitFuFu’s stock surged by 5.33%, reflecting positive investor sentiment.

Key Takeaways

• Total revenue doubled year-over-year to $180.7 million.
• Net income increased to $11.6 million from a previous loss.
• EPS improved to $0.07 from a $0.03 loss.
• Stock rose 5.33% in premarket trading.
• Focus on expanding cloud mining and innovative partnerships.

Company Performance

BitFuFu demonstrated strong performance in Q3 2025, driven by its dual-engine model that combines cloud mining revenue with self-mining operations. The company maintained its position as a leader in Bitcoin cloud mining, achieving the highest revenue quarter in its history. This growth aligns with broader industry trends, where cloud mining is projected to dominate the cryptocurrency mining market in the coming decade.

Financial Highlights

• Revenue: $180.7 million, doubling year-over-year
• Net income: $11.6 million, compared to a $5 million loss
• EPS: $0.07, up from a $0.03 loss
• Adjusted EBITDA: $22.1 million, up from $5.8 million
• Cash and cash equivalents: $32.6 million
• Digital assets: $222.1 million, a 71% increase

Outlook & Guidance

BitFuFu plans to deepen its cloud mining operations, advance real-world asset tokenization, and launch natural gas-powered mining pilots in Canada. The company is also exploring opportunities in high-performance computing (HPC) and artificial intelligence (AI), signaling potential new revenue streams.

Executive Commentary

"Our dual-engine model, combining recurring asset-light cloud mining revenue with direct participation in Bitcoin through self-mining, continues to demonstrate resilience across cycles," said Leo Lu, CEO. Calla Zhao, CFO, remarked, "This quarter marked the highest revenue quarter in BitFuFu’s history." Leo Lu added, "We are converting demand into strong revenue growth, scaling with discipline, and widening our opportunity set."

Risks and Challenges

• Bitcoin price volatility could impact revenue from mining operations.
• Increasing global hash rate and network difficulty may affect mining profitability.
• Regulatory changes in cryptocurrency markets could pose challenges.
• Dependence on partnerships for data center operations may introduce operational risks.
• Expansion into new sectors like HPC and AI involves execution risk.

BitFuFu’s Q3 2025 results highlight the company’s strategic growth and operational resilience, with promising prospects in cloud mining and new technological ventures.

Full transcript - BitFuFu Inc (FUFU) Q3 2025:

Charlie, Investor Relations Representative, BitFuFu: Thank you, Operator. Ladies and gentlemen, good day, welcome to BitFuFu’s third quarter earnings conference 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 today on the call are Chairman and CEO Leo Lu and CFO Calla Zhao. Before we begin, please note that today’s discussion will contain forward-looking statements made pursuant to the safe harbor provisions of the U.S. Private Securities 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 could cause actual results to differ materially from management’s current expectations. Potential risks and uncertainties include, but are not limited to, those outlined in the company’s public filings with the U.S. Securities and Exchange Commission.

The company assumes no obligation to update any forward-looking statements except as required by applicable law. We will be discussing non-GAAP financial information on this call. The company provides this information to supplement information prepared in accordance with U.S. generally accepted accounting principles, or GAAP. A reconciliation of these measures to the company’s reported GAAP results can be found in the reconciliation tables provided in today’s earnings release. Finally, it’s important to note that while we will not be conducting a Q&A on this call, you can email your questions to ir.bitfufu.com, and we’ll respond as quickly as possible, generally within 24 hours. I’ll now turn the call over to Leo Lu, Chairman and CEO of the company.

Leo Lu, Chairman and CEO, BitFuFu: Thanks, Charlie, and thank you all for joining us today. The third quarter was a clear inflection point for BitFuFu. Total revenue reached $180.7 million, doubling year over year and increasing 57% sequentially. An adjusted EBITDA of $22.1 million was up substantially year over year. This performance reflects strong execution in our cloud mining solutions platform, continued expansion of our self-mining fleet, and healthy demand in our mining equipment sales business. Our dual-engine model, combining recurring asset-light cloud mining revenue with direct participation in Bitcoin through self-mining, continues to demonstrate resilience across cycles. As usual, our cloud mining business remained our largest revenue contributor this quarter, reaching $123 million, a 78.4% increase year over year. We have described before why our cloud mining service is attractive to customers. It’s easy to use; you can start with a one-click purchase. It has built-in leverage.

Customers can choose to pay the service fee over time to direct more upfront dollars to purchase hash rate. It is cost-effective. For many, it lowers the average cost of acquiring Bitcoin versus buying directly on an exchange. This value proposition appeals to both retail and institutional clients. In third quarter, the price of Bitcoin moved higher, and interest in accumulating Bitcoin increased. Together, these trends lifted demand for our cloud mining services. We saw more new customers and orders, and importantly, more repeat purchases from existing customers as digital asset treasury strategies see wider adoption. More institutions are turning to mining to accumulate Bitcoin. This trend is expanding our cloud mining customer base. Institutional clients prioritize two things: safeguarding capital and platform reliability.

As the publicly listed provider with the largest market share in the Bitcoin cloud mining, BitFuFu consistently operates with transparency and compliance, creating a platform built for trust. Additionally, our globally distributed hash rate mitigates regional risks and ensures a stable service delivery rate of over 99% for our cloud mining offerings. These factors are the foundation of our high customer retention rate and continued expansion of our client base. Building on that, I remain optimistic about the market potential of cloud mining. Independent research from Roots Analysis projects that cloud mining services could account for approximately 60% of the cryptocurrency mining market by the next decade. This implies two things: demand for cloud mining services should grow alongside the broader cryptocurrency mining market, and cloud mining is expected to account for a larger share of that growth over time.

In the third quarter, we adjusted our hash rate mix to meet demand from our cloud mining customers. We allocated a portion of our self-owned hash rate to fulfill cloud mining orders. At the same time, when we sourced hash rate from third-party suppliers, we strategically acquired additional backup capacity to ensure we could guarantee 100% fulfillment of all customer orders. Any backup hash rate not immediately required for orders was directed to our self-mining operations. This setup allows dynamic allocation. We can route self-owned or third-party hash rate to cloud services or to self-mining as needed. In third quarter 2025, on average, 38% of our self-owned hash rate was allocated to cloud mining services, and 62% was used for self-mining. For leased third-party hash rate, 94% was dedicated to cloud services, and 6% was used for self-mining.

Since October, Bitcoin has experienced significant price volatility, moving from a peak above $126,000 to below $100,000. We are often asked, does demand for cloud mining decline when the BTC price falls? Our experience says no. BitFuFu’s historical performance demonstrates the remarkable resilience of our business model. Since our inception in 2020, we have navigated both bull and bear markets. Even during bear markets, our cloud mining business has consistently grown and remained profitable. The underlying reason for this is that even when prices fall, long-term belief in Bitcoin and a buying-the-dip mentality persist. During such times, many customers prefer the controlled cost and convenience of cloud mining to maintain their participation in the mining ecosystem. For BitFuFu, the cloud mining model provides significant advantages. Collecting service fees upfront improves cash flow and creates revenue visibility through orders, which greatly mitigates the uncertainty caused by Bitcoin’s price volatility.

Furthermore, unlike traditional mining companies that require ongoing large-scale capital reinvestment in hardware, our cloud mining business operates on a capital-light model. By leveraging our partners’ mining facilities and power resources, we can access and deploy significantly more hash rate with limited capital outlay. This strategy expands our market reach and enables us to achieve high capital returns through rapid capital turnover. To secure hash rate supply, we rely first on our self-owned capacity and medium to long-term procurement, typically 360 and 540-day orders. We complement this with shorter 90 to 120-day contracts to manage market price fluctuations. This balanced approach provides the flexibility to adjust procurement prices based on market conditions while ensuring we have stable long-term hash rate to reliably meet customer demand. While temporary hash rate fluctuations may occur upon the expiration of some contracts, levels typically recover within one to two months.

We deliberately avoid single supplier risk. Our partner network spans multiple jurisdictions globally, including North America, South America, and Africa, and comprises dozens of large-scale miners and mining farms. Leveraging the powerful dispatch capabilities of our Aladdin platform, the system can seamlessly reallocate user hash rate demands to other healthy mining farms in the event of a temporary issue with any specific partner or region, ensuring an uninterrupted user experience. However, as we have consistently articulated and executed, our core strategic objective is to transition from a purely asset-light model towards an integrated approach that balances both asset-light operations and strategic asset-heavy investments. Consequently, throughout the third quarter, we continue to increase our holdings of self-owned miners and actively pursue opportunities globally to either build or acquire mining facilities. Despite Bitcoin’s rising acceptance, we manage policy and regulatory risk with discipline.

We evaluate new projects, whether in new regions or through mergers and acquisitions, against a strict payback period benchmark and rigorous diligence before we proceed. For example, our investment in October 2024 secured a majority stake in a mining facility in Ethiopia. Recently, Ethiopian Electric Power announced a new electricity tariff, effective December 1, 2025, under which electricity charges vary from $0.035 per kilowatt off-peak to $0.06 per kilowatt on-peak. However, we do not interpret this adjustment as representing a shift in the government’s policy toward the crypto mining industry. Even after the tariff increase, Ethiopia’s electricity prices remain competitive on a global scale. Due to BitFuFu’s early-mover presence in the region and our disciplined investment strategy, our operations in Ethiopia have to date generated stable revenue and accumulated substantial profits.

We expect these profits to fully cover all our upfront investment costs in Ethiopia in the near term. We consistently adhere to a philosophy of creating mutual benefits with local communities. Therefore, prior to any investment, we conduct comprehensive risk assessments and implement proactive measures to ensure long-term stable operations. Meanwhile, we will continue to seek out quality power resources and cryptocurrency-friendly regulatory environments worldwide, continuously enhancing our operational and investment returns. Beyond our cloud mining operations, we actively accumulate Bitcoins through our self-mining activities. While we allocated a portion of our self-owned hash rate to support cloud mining customers in third quarter based on strategic and operational considerations, this did not impede our Bitcoin accumulation. We consistently leverage periods of price volatility as opportunities to acquire more Bitcoins. These combined strategies are all directed toward our ultimate goal of maximizing shareholder value.

As of quarter end, total mining capacity of BitFuFu increased to approximately 36 exahash, supported by 624 megawatts of hosting capacity across our global footprint. Beyond the quarter’s financial performance, we took meaningful steps to broaden our technology and infrastructure partnerships to position us for long-term growth. Last quarter, we briefly discussed the opportunities for real-world assets, or RWA, and the potential to tokenize our hash rate. I am pleased to announce that we have signed a cooperation agreement focused on RWA sector, a strategic move to bridge our cloud mining business with broader capital markets. This initiative is designed to expand our market reach, serve a more diverse customer base within a compliant framework, lock in long-term customer demand, and deepen partnerships with institutions.

Simultaneously, it is expected to provide the company with predictable cash flow, optimize our capital structure, and advance our business model by leveraging traditional capital to drive hash rate expansion. We also previously said that we were evaluating opportunities to leverage low-cost natural gas in Canada for power generation. To that end, we are preparing to launch two natural gas-powered mining pilots in Canada to evaluate cost and uptime advantages of natural gas. As I have previously stated, securing natural gas power generation capabilities could provide a long-term stable structural advantage in the unit cost of hash rate production. We hope to have a definitive agreement signed in the coming month. We also continue to seek ways to increase our geographic footprint and have expanded partnerships with local data center operators in the Middle East.

We expect to begin by collaborating on hosting capacity and, over time, pursue joint development of additional data centers to serve both our cloud mining customers and strategic hosting partners. Finally, the HPC and AI sectors are currently a focal point of market attention, and we have received numerous inquiries from investors regarding our potential entry into this field and its timing. We have observed many of our peers transitioning their BTC mining data centers to support HPC and AI workloads. We are currently monitoring the landscape and evaluating potential opportunities in HPC. BitFuFu operates under an integrated asset-light and asset-heavy model, which distinctively sets us apart from competitors. Therefore, we will move at a deliberate and disciplined pace that optimizes costs and strengthens the business’s economic resilience. We are committed to providing timely updates to our investors once strategic decisions are made and material progress is achieved.

We believe initiatives like these, combined with disciplined capital allocation and an efficient operating model, set the stage for sustainable growth. With the fourth quarter underway, our focus is on operational execution and customer experience as we work to finish the year strong. I will now turn the call over to Calla to provide more details on our financial results. Thank you, Leo. Good morning, everyone. Now, I would like to present our third quarter 2025 financial and operating results. This quarter marked the highest revenue quarter in BitFuFu’s history, with total revenue reaching $180.7 million, representing 100% year-over-year growth. This achievement is particularly encouraging because it was delivered against a challenging backdrop of steadily increasing global hash rate and network difficulty, despite an approximately 88% increase in the average price of Bitcoin compared to the same period last year.

In terms of the bottom line, third quarter 2025 net income increased to $11.6 million from a $5 million loss in the same period last year. Adjusted EBITDA was $22.1 million compared to $5.8 million in the same period last year. For the three months ended September 30, 2025, basic and diluted earnings per ordinary share were $0.07, compared to a $0.03 loss per share in the same period of 2024. This performance demonstrates the resilience of our business model and our disciplined execution. Looking at the segments, cloud mining revenue increased to $122.9 million, a 78% year-over-year increase and a 30% increase compared to the second quarter. For the quarter, cloud mining revenue accounted for 68% of total revenue. Self-mining revenue was $20.1 million, down slightly year-over-year but up almost 36% from the second quarter, and represented 11% of total revenue.

We experienced a sharp increase in mining equipment sales, with revenue increasing to $35.8 million, representing almost 20% of total revenue. Since Leo thoroughly covered the revenue by business line, I will keep this brief and highlight a few metrics. In the cloud mining sector, customer demand for cloud hash rate grew strongly again this quarter, with demand exceeding supply. New customers contributed approximately 33% of cloud mining revenue in the third quarter, while existing customers contributed approximately 67%. A standout metric I’d like to emphasize is our exceptional net dollar retention rate of nearly 120% for the third quarter of 2025, a clear indicator of the robust health and growth within our existing client base. In the third quarter, we produced a total of 1,207 Bitcoins, including 174 Bitcoins from self-mining and 1,033 Bitcoins generated through client cloud mining activities.

Total quarterly costs were $173.5 million, which included depreciation and amortization expense of $7.5 million. This represents an increase of 94% compared to the same period in 2024 and is commensurate with the 100% increase in revenue. Operating expenses for the third quarter of 2025 declined 52.6% year-over-year due to lower stock compensation expense of $0.2 million versus $4.3 million in 2024. Excluding the impact of stock compensation expense, total third quarter 2025 operating expenses as a percentage of revenue improved by 91 basis points year-over-year and 94 basis points sequentially, demonstrating our focus on controlling costs while maintaining strong top-line growth. As of September 30, 2025, the company held $32.6 million in cash and cash equivalents and $222.1 million in digital assets, compared to $38.2 million and $129.9 million, respectively, as of December 31, 2024.

The 71% increase in digital assets was primarily driven by the company’s treasury management strategy and a 22% increase in the price of Bitcoin from December 31, 2024, to September 30, 2025. In addition, the company held $68 million in digital asset collateral receivables, which represents Bitcoin pledged to lenders in exchange for borrowings. The company’s balance of cash and digital assets is sufficient to meet working capital requirements. We also proactively maintain suitable financing options to support future capital expenditures. In June 2025, we established a $150 million at-the-market ATM equity program. Over the past few months, we have issued approximately 1.5 million shares for $6 million from this program at a measured pace, mindful of dilution to existing shareholders. These smaller periodic issuances have also effectively enhanced the trading liquidity of our stock.

We are pleased to note that the average daily trading volume of the stock in the third quarter increased by 138% and 9.5% compared to the first and second quarters of 2025, respectively. The strong third quarter results underscore our ability to drive solid top-line growth regardless of broader macro conditions. We continue to expand capacity and partnerships with measured CapEx, preserve ample liquidity, and maintain a strong balance sheet. We remain committed to increasing our owned capacity footprint and tapping into new areas of growth to drive long-term value for our shareholders. This concludes my remarks. I will now turn the call back to Leo. To close, the third quarter affirmed that our strategy is working. We are converting demand into strong revenue growth, scaling with discipline, and widening our opportunity set.

As we look ahead, we will deepen our core cloud mining franchise, advance our RWA cooperation with licensed compliant counterparties, and progress the natural gas pilots in Canada while expanding our partnerships from hosting into future co-development. We will allocate capital prudently, prioritize cash generation and operational excellence, and hold ourselves to the highest regulatory standards. Our mandate is clear: compound long-term shareholder value through reliable execution, thoughtful innovation, and transparent communication. Thank you to our customers, partners, employees, and shareholders for powering this momentum. Thank you. This concludes today’s conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.

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