Q3 2025 BitFuFu Inc Earnings Call

Thank you, operator. Ladies and gentlemen. Good day. Welcome to bit. Poo, Poo's, third quarter earnings conference call.

The company's Financial results were released earlier today and are available on bitcoin's. Investor relations website at ir.com.

And global newswire.com.

Joining me today on the call are chairman and CEO, Leo, luo, and CFO calls out.

before we begin, please note that today's discussion will contain forward-looking movements made pursuant to the safe harbor, provisions of the US 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.

It helped me assumes, no obligation to update any form of statements except as required by applicable law.

We will be discussing non-gaap financial information on this call.

Company provides this information to the supplement information prepared in accordance with the US generally, accepted accounting principles or gaap.

A reconciliation of these measures to the company's reported GAAP results can be found in the reconciliation table provided in today's earnings release.

I'll now turn the call over to Leo lewd, chairman and CEO of the company.

The third quarter was a clear inflection point for bit Fufu.

Total revenue reached 180.7 million doubling year-over-year and increasing 57% sequentially.

An adjusted IBA of $22.1 million was up substantially year-over-year.

Our dual engine model, combining recurring asset light, Cloud mining Revenue with direct participation in Bitcoin, through self mining.

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.

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.

Bit Fufu. Consistently operates with transparency and compliance creating a platform built for trust.

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.

Any backup hash rate, not immediately required for orders. Was directed to our self mining operations.

This setup allows Dynamic allocation we can route cell phones or third-party hash rate to cloud services or to self mining as needed.

In third quarter, 2025 on average 38% of our cell phone, hash rate was allocated to Cloud. Mining services and 62% was used for self mining.

For lease, third-party hash rate, 94% was dedicated to cloud services, a 6% was used for soft mining.

We are often asked, does demand for cloud? Mining decline, when the BTC price Falls?

Since our inception in 2020, we have never navigated both bull and bear markets.

Even during bare markets.

And remained profitable.

The underlying reason for this is that even when prices fall long-term, belief in Bitcoin and the buying the dip mentality, persist

During such times many customers prefer the control cost and convenience of cloud mining to maintain their participation in the mining ecosystem.

For beautiful food. 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.

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.

To secure hash rate Supply. We rely first on our cell phone 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 a 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 1 to 2 months.

We deliberately avoid single supplier risk.

Our partner Network.

North America, South America, and Africa, and comprises dozens of large-scale, Miners and Mining Farms.

Leveraging. The powerful dispatch capabilities of our Aladin 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 cell phone Miners and actively pursued 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 a new regions or through mergers and Acquisitions against the 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

Effective December 1st 2025.

Under which electricity charges vary from 3.5 cents per kilowatt of peak to 6 cents 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 bit fufu'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 bit Fufu.

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'm 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.

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 2, natural gas, powered. Mining pilot 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.

Bit Fufu operates under an integrated asset light, and asset heavy model, which distinctively sets us apart from competitors.

Therefore, we will move at deliberate and disciplined Pace that optimizes costs and strengthens the business's economic resilience.

We are committed to providing timely updates to our investors. 1 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 on the way.

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 cala 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 bit fufu'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 the 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 dollars from a 5 million dollars loss in the same period last year.

Adjusted evida 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 loss of $0.03 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.

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 produce 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 this is commensurate with the 100% increase in revenue.

Operating expenses for the third quarter of 2025.

Declined. 52.6% year-over-year due to lowest 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. Point sequentially demonstrating our focus on controlling costs while maintaining strong Topline growth.

As of September 30th 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, 31st 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 30th 2025 in addition, the company held 68 million in digital asset collateral receivables, which represents Bitcoin pledge to lenders in exchange for borrowing.

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 dollars 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 Topline 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 own 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 of the firm, our strategy is working.

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.