<a href="https://af.bitfufu.com/QRdO/cwhbatz1">BitFuFu</a>, a <a href="https://ultramining.com/en/manufacturers/bitmain/">Bitmain</a>-invested bitcoin mining and cloud mining platform, has reported a significant increase in its operational <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/">hashrate</a>, rising from 15 EH/s in mid-2023 to nearly 23 EH/s by the year's end. This expansion in hashrate capacity enabled BitFuFu to mine a total of 10,333 bitcoins in 2023, benefiting both its proprietary mining operations and its cloud mining customers, according to <a href="https://theminermag.com/news/2024-04-11/bitmain-backed-bitfufu-reports-23-eh-s-of-bitcoin-hashrate/">TheMinerMag</a>. 
In its 2023 earnings release, BitFuFu revealed generating $284 million in total revenue. The cloud mining segment was particularly lucrative, contributing $178 million by mining 6,756 BTC for customers. Meanwhile, the proprietary mining segment added another 3,577 bitcoins to its coffers, generating $100 million in revenue. 
A significant portion of BitFuFu's operations relies on leasing miners from Bitmain and utilizing Bitmain’s <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">hosting</a> facilities across multiple regions, including the U.S. This partnership incurred $166.5 million in costs related to Bitmain, representing 60% of BitFuFu’s $278 million revenue from both cloud mining and proprietary mining throughout the year. 
Despite this substantial outlay, BitFuFu managed to decrease the percentage of revenue paid to Bitmain in the latter half of 2023 by reallocating hashrate from proprietary mining to its cloud mining segment. However, the specifics of the clientele purchasing BitFuFu's cloud mining products remain unspecified. According to BitFuFu's website, the operational cost for customers purchasing a 180-day S19XP contract equates to approximately $0.147/kWh, highlighting the financial aspects of engaging in cloud mining services with the platform.

BitFuFu Achieves Remarkable Growth, Boosting Hashrate to 23 EH/s

Ultramining_Eng

Other articles published on Apr 12, 2024

BlackRock smashes $10.5T record in Q1 managed assets

Boosting the U.S. Economy: The Role of Stablecoins in Modern Finance

Russian-language cybercrime operation mimics web3 games to target macOS, Windows

Argentina’s Central Bank Takes Steps to Halt Crypto Trading

Eyes On The Prize: Tether And Binance Coin Investors Are Now Betting Big On NUGX Appeal

Buying O2T is Like Buying Dogecoin (DOGE) and Shiba Inu at $0.0000002

Join our free newsletter for daily crypto updates!