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Making cloud-mining accessible with Bitfufu

4min Read
bitfufu

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BitFuFu Inc. is a digital asset mining service that is pioneering cloud-mining services around the world. The platform is dedicated to fostering a transparent, compliant, and secure blockchain infrastructure with an array of stable services and miner hosting services for both institutional customers and individual digital asset enthusiasts. 

The platform was founded in 2020 to create an organization that focuses on giving cloud mining services to digital asset customers worldwide. Traditionally, the only two options for buying Bitcoin were either through spot prices directly from exchanges or purchasing equipment to mine Bitcoin on their own. Both of these options require a significant amount of investment. 

Cloud mining and BitFuFu’s solution

While mining might seem like an appealing alternative to some, it requires very precise control of cost and efficiency on top of that the users would need to buy mining machines and arrange for the transportation, installation, hosting, monitoring, and maintenance to ensure smooth operations. 

This kind of commitment can be difficult for an individual miner, BitFuFu offers an option that is affordable and solves this issue for the common user. A user can just log in to their BitFuFu account and purchase hash rate for their desired period of time. The platform then mines Bitcoin for its users.

The platform not only gets to generate upfront working capital to expand a scale of operations while also hedging against Bitcoin price volatility. By pre-selling hashrate at a fixed price BitFuFu secures future revenue regardless of the future prices. Users also benefit from this as they get potentially lower costs instead of buying Bitcoin directly from exchanges. 

Prominent growth in numbers 

The platform recently announced its financial results for the year 2023 which saw a very significant growth in its numbers from the previous year. The hosting capacity grew from 336 MW in 19 sites in 2022 to 515 MW across 24 sites as of 31 December 2023. 

The total mining capacity skyrocketed 106.3% to a record 22.9 EH/s in 2023 from the previous 11.1 EH/s in 2022. The total number of cloud-mining registered users which was 188,460 in 2022 rose to 304,270 in 2023. 

Metric As of December 31,
2023 2022
Hosting capacity (MW) 515 336
Total mining capacity (EH/s) 22.9 11.1
Cloud-mining Registered Users 304,270 188,460
For the Year ended December 31
2023 2022
BTC Produced
From BitFuFu self-mining operations 3,577 2,825
By customers from cloud-mining solutions 6,756 3,405
Average BTC produced per day by customers and BitFuFu 28.3 17.1

As far as the Bitcoin produced was concerned, the number were as follows:

  • For the self-mining BitFuFu operations, it grew from 2825 in 2022 to 3577 in 2023
  • BTC mined by customers from cloud-mining solutions rose from 3405 to 6756
  • The average BTC produced per day by both customers and BitFuFu combined hiked from 17.1 to 28.3 in 2023

The total revenue generated by BitFuFu increased 43.3% from USD 198.2 million in 2022 to USD 284.1 million in 2023. This was primarily due to an increase in revenue from cloud-mining solutions and self-mining operations with a slight offset due to the suspension of sales and leasing of mining equipment and sourcing services for mining equipment sales operations as part of their strategic shift towards the development of its cloud-mining business in 2023. 

There was also a growth in its net income in 2023 from a previous USD 2.4 million in 2022 to USD 10.5 million in 2023. The Chief Executive Officer and Chairman of the Board of Directors, Leo Lu stated that in 2023 BitFuFu witnessed significant growth reflecting the increasing recognition of the value offered to customers through cloud-mining solutions. Additionally, their ability to flexibly allocate mining capacity between self-mining and cloud-mining services and between leased and owned miners depended on an assessment of market dynamics and strategic forecasts that drove the growth of their cloud-mining business in 2023. 

Final Word

BitFuFu is backed by industry pioneers and has carved out a space for itself in the ecosystem over the past few years. It is the only cloud-mining strategic partner of BITMAIN to date and therefore gets privileged access to its mining resources. With its efficient and consistent operations across multiple facilities and proprietary developed system handling ultra-large-scale hash rate management and dispatching, the platform is the complete package for anyone looking to start with cloud mining. 

The platform has more than 300,000+ registered users around the world with a hosting capacity of 515 MW and a hash rate under management of 22.9 EH/s across its 24 worldwide mining facilities making it an ideal choice for crypto enthusiasts. 

For more information on BitFuFu, please check out their official website

Disclaimer: This is a paid post and should not be treated as news/advice. 

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