Singapore-based cloud Bitcoin miner BitFuFu doubled its revenue in the third quarter from a year ago, driven by demand for cloud mining and equipment as miners look to take advantage of rising Bitcoin prices.
According to BitFuFu’s third quarter earnings report on Wednesday, total revenue increased 100% year over year to $180.7 million, of which cloud mining accounted for $122 million.
This increase was driven by strong demand for cloud mining solutions, users hoarding mining equipment, and continued expansion of mining capacity.
BitFuFu doubled its revenue in the third quarter compared to the same period last year due to increased interest in cloud mining. sauce: Bitfufu
BitFuFu operates its own mining farm where it directly mines Bitcoin (BTC). Additionally, it sells mining machines, provides hosting services, and allows users to rent or purchase hash rates for a fee.
Demand for cloud mining increases with hashrate
BitFuFu’s cloud mining users increased by more than 40% compared to the same period last year to 641,526, and mining equipment sales reached $35 million, up from just $300,000 in the same period last year.
The average cost of Bitcoin in the third quarter of last year was $61,000, compared to $114,500.
“This growth reflects strong demand for mining machines supported by the sustained upward trend in Bitcoin prices,” the miner said.
According to the analysis platform Ycharts, the network hash rate is also on the rise, remaining at 1.19 billion, up from 687.19 million a year ago. Cloud mining allows users to mine cryptocurrencies without having to maintain or upgrade their own hardware.
Bitcoin mining also contributes to profits
Bitcoin miners are shifting their capabilities to AI and high-power computing hosting services in the wake of the April 2024 halving, which reduced mining rewards.
However, BitFuFu CEO Leo Lu said that continued self-mining of Bitcoin continues to contribute to the company’s growth and revenue.
“Our strong third quarter results demonstrate the benefits of our differentiated dual-engine model, which combines cloud mining recurring revenue with direct exposure to Bitcoin price appreciation through self-mining operations.”
“This model provides multiple levers to manage volatility and maintain profitability throughout the cycle, and our strong balance sheet provides the flexibility to invest where returns are most attractive,” he added.
BitFuFu mined 174 Bitcoins in the third quarter, also increasing its total holdings by 19% compared to the same period in 2024 to 1,962 coins.