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

BitFuFu, a Bitmain-invested bitcoin mining and cloud mining platform, has reported a significant increase in its operational hashrate, 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 TheMinerMag.

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 hosting 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.